Home Prices in 20 U.S. Cities Rose at Faster Pace in Novemberby
Home-price gains in 20 U.S. cities accelerated for a fourth month in November when compared with a year earlier, according to S&P CoreLogic Case-Shiller data released Tuesday.
- 20-city property values index increased 5.3 percent from November 2015 (forecast was 5 percent) after climbing 5.1 percent in the year through October
- National home-price gauge rose 5.6 percent from 12 months earlier
- On a monthly basis, the seasonally adjusted 20-city measure was up 0.9 percent from October
While home prices have been steadily increasing on the back of solid hiring, stronger wages and low mortgage rates, a recent increase in borrowing costs threatens to slow down momentum in the housing market in the coming months. Even with those headwinds, a scarce supply of homes will continue to support rising values, potentially persuading more owners to put their properties up for sale.
“Mortgage rates have increased since the election and stronger economic growth could push them higher,” David Blitzer, chairman of the S&P index committee, said in a statement. “Further gains in personal income and employment may increase the demand for housing and add to price pressures when home prices are already rising about twice as fast as inflation.”
- All 20 cities in the index showed a year-over-year gain, led by a 10.4 percent advance in Seattle and 10.1 percent in Portland, Oregon
- After seasonal adjustment, Boston, Denver and New York had the biggest month-over-month price increases at 1.2 percent each; slowest gainers were Cleveland, Miami, Phoenix and San Diego, at 0.5 percent apiece