From the WSJ:
Home prices climbed strongly in November, as price growth showed no signs of slowing even after mortgage rates began to tick up during the month.
The S&P CoreLogic Case-Shiller Indices, covering the entire nation rose 5.6% in the 12 months ended in November, up slightly from the revised 5.5% year-over-year increase reported in October.
The 10-city index gained 4.5% over the year, up from 4.3% in October and the 20-city index gained 5.3% year-over-year, up from a 5.1% increase in October.
The rise matched the expectation of economists surveyed by The Wall Street Journal, who expected the 20-city index to rise 5.3%.
The hottest markets in the country remain concentrated in the Northwest, as many buyers priced out of the Silicon Valley area flee to secondary tech hubs. Seattle led the way with a 10.4% increase, Portland reported a 10.1% year-over-year gain and Denver had an 8.7% annual increase in home prices.
Home prices set a record in September and have continued climbing by more than 5% year-over-year since then.
“One can argue that housing has recovered from the boom-bust cycle that began a dozen years ago,” said David Blitzer, managing director at S&P Dow Jones Indices.
The volume of sales has cooled in recent months, as rising mortgage rates have collided with higher prices and a shortage of inventory. Purchases of previously owned homes slid 2.8% in December from a month earlier, the National Association of Realtors said last Tuesday. U.S. new home sales dropped by 10.4% in December, the Commerce Department said Thursday.
Case-Shiller offers a lagging indicator of the housing market and November’s numbers reflect only the beginning of a sharp increase in mortgage rates that began around the U.S. presidential election in November. Average rates for 30-year fixed mortgages rose from roughly 3.5% around Election Day to 4.32% at the end of December, according to mortgage company Freddie Mac. In the past week they averaged 4.19%, Freddie Mac said Thursday.