Home Prices in 20 U.S. Cities Climb by the Most Since July 2014
Home prices in 20 U.S. cities increased in November by the most in more than three years, underscoring a lingering scarcity of housing inventory, according to S&P CoreLogic Case-Shiller data released Tuesday.
Key Takeaways
The nationwide measure of price gains, which has been 5 percent or more for 16 straight months, reflects the rebound in residential real estate. While demand is getting a boost from a strong job market and low mortgage rates, supply has continued to lag, especially for previously owned dwellings.
A limited number of for-sale listings has in the past few years been driving up property values faster than wage gains, crimping affordability for younger, first-time buyers. That could eventually become a headwind to faster price appreciation. For now, the gains mean rising home equity for those who own properties.
Economist Views
“Home prices continue to rise three times faster than the rate of inflation,” David Blitzer, chairman of the S&P index committee, said in a statement. “Without more supply, home prices may continue to substantially outpace inflation.”
Other Details
— With assistance by Jordan Yadoo
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