S&P/Case-Shiller’s 20-city index rose 5.8% during the 12-month stretch, though just 0.1% in November, while the Federal Housing Finance Agency’s (FHFA) index accelerated 5.9% annually, and 0.5% monthly.
Year-over-year price gains based on FHFA’s numbers ranged from 10% in the Mountain region to 2.6% in the Middle Atlantic. Only three regions posted monthly declines, including the Middle Atlantic, the East South Central and the West South Central (MarketWatch Jan. 26).
By city, Portland experienced the strongest annual gains with an 11.1% jump, followed by San Francisco at 11% and Denver at 10.9%.
Furthermore, 14 out of the 20 cities tracked in the S&P index experienced stronger levels of annual price growth in November than October.
“Low mortgage rates, tight supplies and an improving labor market” are pushing prices higher, said David Blitzer, S&P Dow Jones Indices index committee chair.
Five cities posted monthly decreases in home prices in November, down from eight in October. Chicago recorded the weakest month with a 0.7% decline, in addition to the weakest year with a mere 2% gain.
Despite a rosy picture, however, the housing market could stall in the coming months if oil prices continue to bottom out and the dollar continues to strengthen because of international economic turmoil, Blitzer added (MarketWatch).