U.S. home prices increased 13.7%, on average, from November 2012 to November 2013, according to the S&P/Case-Shiller Home Price Indices.
Of the 20 major metropolitan areas covered in the report, Dallas and Chicago saw the highest year-over-year increases at 9.9% and 11%, respectively.
Only two cities – Boston and Cleveland – saw home prices decline on a year-over-year basis. However, both declined only 0.1%; thus home prices in those two cities have remained relatively flat. Minneapolis and San Diego also remained relatively flat.
Looking at home prices on a month-over-month basis, nine out of the 20 cities tracked recorded positive monthly returns. Miami took the lead with a gain of 1.4%, compared to October, and Las Vegas, the previous leader, followed with a gain of 0.6%.
Chicago experienced the largest month-over-month decline – with home prices dropping 1.2% in November compared to October.
Dallas edged up to set a new index high in November – and Denver was only 0.6% off of its highest level, due to two consecutive months of slight declines, according to the report.
‘November was a good month for home prices,’ says David M. Blitzer, chairman of the Index Committee at S&P Dow Jones Indices, in a statement. ‘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.
Blitzer notes that home prices have been increasing steadily on a year-over-year basis since June 2012.
‘November continued that trend with another strong month – although the rate of increase slowed,’ he says. ‘Looking at the year-over-year returns, the Sun Belt continues to push ahead with Atlanta, Las Vegas, Los Angeles, Miami, Phoenix, San Diego, San Francisco and Tampa taking eight of the top nine spots. Detroit continues to recover but remains the only city with prices below its 2000 level.’
Blitzer adds that home prices have increased despite rising mortgage interest rates, which have dampened home sales.
‘Combined with low inflation – 1.5% in 2013 – homeowners are enjoying real appreciation and rising equity values,’ he says. ‘While housing will make further contributions to the economy in 2014, the pace of price gains is likely to slow during the year."
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