Home prices rose 0.9% in November, according to the latest S&P/Case-Shiller home price index.
Economists had estimated that the 20-city composite index, which covers major metropolitan areas, rose 0.8% month-on-month. Year-on-year, they had forecast a 5.7% rise, and the print was 5.8%, the highest since June 2014.
Home-price appreciation was “supported by continued low mortgage rates, tight supplies and an improving labour market,” according to David Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices.
And because the Case-Shiller data tend to lag median existing home prices, there are likely to be “hefty increases” for the next few months, according to Pantheon Macroeconomics’ Ian Shepherdson.