(Bloomberg) -- Growth in U.S. home prices picked up again in February.
A measure of prices in 20 U.S. cities soared 20.2% from a year earlier, up from the 18.9% annual increase in January, the S&P CoreLogic Case-Shiller index showed Tuesday. All 20 cities saw double-digit price increases, with Phoenix, Tampa and Miami reporting the biggest year-over-year jumps.
Nationally, prices surged 19.8%, the third-biggest increase in data going back 35 years, according to Craig Lazzara, global head of index investment strategy at S&P Dow Jones Indices.
Demand for homes remains strong two years after the pandemic hit the U.S., spurring fierce bidding wars for a tight supply of listings. Rapidly rising mortgage rates -- now at a 12-year high -- are pushing some buyers to the sidelines, while others are racing to lock in deals before costs climb further.
While the housing market is now in its traditionally busiest season, signs of a potential cooldown may be emerging. With little to buy, purchases of previously owned homes slowed last month to the lowest level since June 2020.
“The macroeconomic environment is evolving rapidly and may not support extraordinary home-price growth for much longer,” Lazzara said in a statement. “We may soon begin to see the impact of increasing mortgage rates on home prices.”
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