Jan. 31, 2017
Home prices grew 5.6% on an annual basis in November 2016, with prices for homes in Seattle, Portland and Denver showing the highest yearly gains, according the latest reading of the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index.
In Seattle and Portland, prices rose by more than 10% from a year prior to November 2016, S&P Global said.
On a monthly, seasonally adjusted basis, the National Index increased 0.8% in November 2016, with both the 10-City Composite and the 20-City Composite posting 0.2% increases. On the other hand, prices dropped in Chicago (-0.8%), Detroit (-0.1%) and San Francisco (-0.1%) in November 2016 from the prior month.
“With the S&P CoreLogic Case-Shiller National Home Price Index rising at about 5.5% annual rate over the last two-and-a-half years and having reached a new all-time high recently, one can argue that housing has recovered from the boom/bust cycle that began a dozen years ago,” said David M. Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices. Low interest rates, falling unemployment and consistent personal income gains have helped the recovery, he said.
“The new administration in Washington is seeking faster economic growth, increased investment in infrastructure and changes in tax policy, which could affect housing and home prices,” Blitzer said. “Mortgage rates have increased since the election and stronger economic growth could push them higher. Further gains in personal income and employment may increase the demand for housing and add to price pressures when home prices are already rising about twice as fast as inflation.”
– Nicholas Stern, editorial associate