Case-Shiller said home prices hit a record high in November.
Numbers: Home prices in America’s 20 largest cities have risen for the 10th straight month, hitting record highs as fewer homes are listed.
The S&P CoreLogic Case-Shiller 20-city home price index rose 0.1% in November compared to the previous month.
Home prices in America’s 20 largest metropolitan markets rose 5.4% in the 12 months through November.
The national index, which measures home prices more broadly, rose 0.2% in November and was up 5.1% last year. All figures are seasonally adjusted.
All 20 city and national indices hit record highs.
Key details: Detroit saw the largest year-over-year increase in home prices in November. Prices rose 8.2%. The city has had its best real estate market for three consecutive months.
Portland was the only city where home prices fell in November.
| city | What’s different from last year |
Atlanta | 5.9% |
Boston | 7.1% |
charlotte | 7% |
Chicago | 7% |
cleveland | 7.4% |
dallas | 1.7% |
Denver | 1.5% |
Detroit | 8.2% |
las vegas | 2.1% |
angels | 7.2% |
Miami | 7.2% |
minneapolis | 2.7% |
New York | 7.4% |
Phoenix | 2.5% |
Portland | -0.7% |
San Diego | 8% |
San Francisco | 2% |
Seattle | 1.6% |
tampa | 3.4% |
Washington | 4.7% |
Complex-20 | 5.4% |
According to a separate report from the Federal Housing Finance Agency, home prices rose 0.3% in November compared to the previous month, and rose 6.6% last year.
Big picture: Despite a rise in mortgage rates between October and November that reduced homebuying demand, a persistent and severe shortage of homes for sale has pushed prices back up.
This dynamic is likely to persist due to the imbalance between homebuyer demand and homeowners’ reluctance to sell and give up ultra-low interest rates.
Home prices are likely to continue to rise in the new year, especially since interest rates have fallen and demand has increased since November.
S&P said: “November’s year-over-year increase was the largest increase in U.S. home prices in 2023, with the national composite index at 5.1,” Brian D. Luke, head of commodities, real and digital assets at S&P DJI, said in a statement. % went up,” he said.
He added that home prices are rising in most markets. “The days of double-digit gains in the South and stagnant markets in the Midwest are over,” Luke said.
And falling mortgage rates since November “could support further annual gains in house prices,” he added.
Looking ahead: “Home prices will continue to rise as mortgage rates remain low and spring homebuying demand is already dormant,” CoreLogic chief economist Selma Hepp said in a statement.
She added: “This is especially considering young buyers, the huge pent-up demand for homes that have been waiting for low interest rates, and the huge influx of immigrants over the past few years.”
Market reaction: DJIA SPX stock rose in Tuesday morning trading. The yield on the 10-year Treasury note BX:TMUBMUSD10Y was over 4%.
