Home prices up in November at fastest rate since July 2014

Home prices continued to accelerate nationally and in the major cities in November, pushing the overall market closer to its prerecession price peak, according to the S&P/Case-Shiller Home Prices Indices.

This report will also be released at the same time as the November Case-Shiller report, which is expected to show a 0.8% month-on-month increase and a 5.7% uptick over the prior year’s price. The 20-city index posted a 0.8 percent gain in October. Home prices in Portland, San Francisco, Dallas, and Denver hit all-time highs.

“Sales of existing homes were up 6.5% in 2015 versus 2014, and the number of homes on the market averaged about a 4.8 months’ supply during the year; both numbers suggest a seller’s market”.

“Other parts of the economy are not faring as well”, he added, pointing to slumping oil prices and struggles in the energy industry.

Portland saw an 11.1% year-on-year price rise, followed by San Francisco with 11% and Denver with 10.9%. Moreover, the strong US dollar is slowing exports.

“Home prices rose in November, pushed by stubbornly-low home inventory as sellers still wait on the sidelines”.

“Modest price growth in the Washington metro is actually a good sign that the housing market is in balance, as 2.13 percent price growth year-over-year isn’t much higher than inflation”, Trulia Inc.

Among the 20 largest cities, only Chicago had a smaller annual increase in home prices than D.C., up 1.97 percent from a year earlier.