Home prices rose for the 10th straight month in November, hitting a record high, a closely watched housing market barometer showed on Tuesday.
The S&P CoreLogic Case-Shiller 20-city home price index rose 0.1% in November from the previous month. Compared to the previous year, the index rose by 5.4%. This is a larger increase than the 4.9% annualized increase recorded in October.
The index tracks home prices in 20 metropolitan areas in the United States. Although it is called the 20 city index, it also includes surrounding suburban areas. Figures are seasonally adjusted.
Before seasonal adjustment, the 20-city index fell 0.2%, marking the first increase in nine months. This was the first decline since January.
The national house price index, a broader measure, rose a seasonally adjusted 0.2%. It has increased by 5.1% over the past 12 months. October readings showed an annual increase of 4.7%.
Before seasonal adjustment, the index fell by 0.2%.
Both indexes are at record highs, underscoring how well home prices have withstood pressure from rising mortgage rates.
The 10-City Index, which tracks home prices in 10 metropolitan areas, has increased 6.2% since the beginning of the year, up from 5.7% the previous month. After seasonal adjustment, it rose by 0.2%, and before adjustment, it fell by 0.1%.
“November’s year-over-year increase led to the largest increase in U.S. home prices in 2023, with the National Composite Index up 5.1% and the 10-City Index up 6.2%,” said Brian, Head of Real & Digital Products. D. Luke says. S&P DJI Assets.
Home prices are rising due to a lack of supply of homes for sale. Many homeowners decide to stay put because moving would require a new mortgage with a much higher interest rate. Most homeowners get mortgages at significantly lower interest rates than today’s lenders.
The Federal Housing Finance Agency publishes its own index of home prices. According to the data, housing prices rose by 0.3% in November compared to the previous month, and by 6.6% for the year.
Despite hitting a new record high, the price increase in November was lower than expected.
