Home prices rose for the 10th consecutive month in November, hitting a record high, a closely watched barometer of the housing market showed Tuesday.
The S&P CoreLogic Case-Shiller 20-city house price index climbed 0.1 percent in November compared with the prior month. Compared with a year earlier, the index is up 5.4 percent. That’s a bigger gain than the 4.9 percent annual increase recorded for October.
The index tracks home prices in the 20 largest U.S. metropolitan areas. Although it is called a 20-city index, it includes the surrounding suburban areas. The figures are seasonally adjusted.
Before seasonal adjustment, the 20-city index posted a 0.2 percent decline, the first after nine months of increases. This was the first decline since January.
The national home price index, a broader measure, rose 0.2 percent on a seasonally adjusted basis. It is up 5.1 percent over the past 12 months. The October reading showed a 4.7 percent annual gain.
Before seasonal adjustment, the index declined 0.2 percent.
Both indexes are at all-time highs, underscoring how well the house prices have withstood the pressure of higher home loan rates.
The 10-City index, which tracks home prices in the 10 largest metro areas, is up 6.2 percent for the year, up from 5.7 percent in the prior month. It rose 0.2 percent after seasonal adjustment and fell 0.1 percent before adjustment.
“November’s year-over-year gain saw the largest growth in U.S. home prices in 2023, with our National Composite rising 5.1 percent and the 10-city index rising 6.2 percent,” says Brian D. Luke, Head of Commodities, Real & Digital Assets at S&P DJI.
Home prices have been boosted by the paucity of supply of homes for sale. Many homeowners have decided to stay put because moving would require a new mortgage with a much higher rate. Most homeowners have mortgages with rates considerably lower than are available from lenders today.
The Federal Housing Finance Agency puts out its own gauge of home prices. This showed home prices rose 0.3 percent in November from the previous month and a 6.6 percent gain for the year.
Despite hitting new record highs, the price increases in November were lower than expected.