S&P/Case-Shiller home prices were up 0.88% month-over-month in November, in the 20-city index. And were up 13.71% on the year.
This was in line with expectations for a 0.8% mum rise and a 13.8% year-over-year rise.
This compares to a 1.05% mum rise in October, and a 13.61% YoY rise.
Both the 10 and 20-city composites are down about 20% from their June/July 2006 peaks. Meanwhile, the 10-city index is up 23% from the March 2012 lows, while the 20-city index is up 23.7%.
“November was a good month for home prices,” David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices said in a press release.
“Despite the slight decline, the 10-City and 20-City Composites showed their best November performance since 2005. Prices typically weaken as we move closer to the winter. Las Vegas, Los Angeles and Phoenix stand out as they have posted 20 or more consecutive monthly gains.”
“Home prices continue to rise despite last May’s jump in mortgage interest rates. Mortgage applications for purchase were up in recent weeks confirming home builders’ optimism shown by the NAHB survey. Combined with low inflation — 1.5% in 2013 — home owners are enjoying real appreciation and rising equity values. While housing will make further contributions to the economy in 2014, the pace of price gains is likely to slow during the year.”
After a stellar rise in home prices in 2013, economists expect the pace of home price growth to cool going forward.
This is on account of higher mortgage rates, tight inventory, and fewer bargains for investors.
Bank of America economists expect home prices to rise 10% on the year in 2013.
Here’s a look at the trajectory of home prices since 1988:
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