U.S. home prices are rising at a quickening pace, with November
home values showing their biggest annual gain in more than six
years, according to the newest S&P/Case-Shiller Home Price
Indices, released today.
November's index of home values in 20 major metropolitan areas
showed a 5.5 percent increase over the preceding 12 months, the
biggest annual gain reported since August 2006. That's up from a
4.3 percent annual increase in October.
The report marks 11 consecutive months of improving annual price
changes in the S&P indices, dating back to January 2012, when
prices began to pull out of a downward trend.
"Housing is clearly recovering," said David Blitzer, chair of
the S&P Index Committee. "Prices are rising, as are both new
and existing home sales. Existing home sales in November were 5.0
million, highest since November 2009. New home sales at 398,000
were the highest since June 2010. These figures confirm that
housing is contributing to economic growth."
Prices were up over the preceding 12 months in 19 of the 20
metropolitan areas surveyed, with the only decline being in the New
York market, where prices were down 1.2 percent compared to
5 cities post double-digit gains
The biggest gains in home values were seen in the Phoenix
market, which posted a 22.8 percent 12-month increase in November.
It was the seventh consecutive month of double-digit annual price
gains for the Phoenix market, which saw some of the nation's
biggest declines in home prices during the crash.
Double-digit annual price increases were also reported for San
Francisco, Detroit, Minneapolis and Las Vegas, though none
approached Phoenix's pace.
On a month-to-month basis, only 10 cities saw price increases
from October to November, while 10 saw declines. Blitzer attributed
the mixed performance to seasonal factors, noting that winter is
usually a weak period for the housing market and saying that the
continuing improvement in annual price changes point to an ongoing
First published at: