“Housing prices were notably—I am tempted to say ‘very’—strong in September. A trend of accelerating increases in the National Composite Index began in August 2019 but was interrupted in May and June, as COVID-related restrictions produced modestly decelerating price gains. Our three monthly readings since June of this year have all shown accelerating growth in home prices, and September’s results are quite strong.

The last time that the National Composite matched September’s 7.0 percent growth rate was more than six years ago, in May 2014. This month’s increase may reflect a catch-up of COVID-depressed demand from earlier this year; it might also presage future strength, as COVID encourages potential buyers to move from urban apartments to suburban homes. The next several months’ reports should help to shed light on this question.”

— Craig J. Lazzara, Managing Director and Global Head of Index Investment Strategy, S&P Dow Jones Indices.