Western Cities Lead the Way
Home prices rose in November, as the S&P/Case-Shiller U.S. National Home Price Index (HPI) increased 0.9 present on the month. Nationally, home prices have risen 5.3 percent over the past year.
U.S. home prices, as measured by the S&P/Case-Shiller National HPI, picked up 0.9 percent in November. The 10-City and 20-City HPIs both rose solidly, each posting increases of 0.9 percent over the month. Western cities led the way, as Portland, San Francisco and Denver saw the greatest gains.
In a separate report released today, the FHFA HPI, which reflects homes securitized by Fannie Mae or Freddie Mac, rose 5.9 percent over the year.
Supply & Demand Driving Prices
Historically low levels of inventory for new and existing homes should continue to support home prices into 2016. Meanwhile, housing demand is likely to remain solid as underlying fundamentals, including improving labor market conditions and household formations, continue to strengthen.
We are looking for home price appreciation to decelerate modestly in 2016, to 4 to 4.5 percent, as supply gradually comes back online and demand from foreign buyers cools off.
Read the complete commentary and see charts here: sp-caseshiller-20160126