Today’s S&P/Case-Shiller National Home Price Index increased 5.3% year-over-year in November 2015, which is the 43rd consecutive month of positive gains. More importantly, November’s number was the ninth straight month in which the year-over-year figure increased over the previous month. This is further evidence that the U.S. housing market is entering a second expansionary phase since the recovery began in May of 2012. This upward trend of the National Index reflects low unemployment, strong job growth and low inventory.
Prices in last month’s hot markets – San Francisco, Denver, and Portland – continue to surge year-over-year with increases of 11% each. Higher prices in these markets should help increase inventory headed into 2016, but at the same time push some homes out of reach for buyers. Prices in the coastal West, Southwest, and coastal South led the way with year-over-year averages of 8.8%, 7.8%, and 6.3%. Prices in the Midwest and coastal North lagged, showing smaller gains of 3.8% and 3.5%. This suggests a widening of the price gap between coastal, temperate regions of the country and more inland, northeasterly markets.
S&P/Case-Shiller Highlights:
- The US National index for November 2015 was up 5.3% year-over-year.
- The 10-City Composite index was up 5.3% year-over-year.
- The 20-City Composite index was up 5.8% year-over-year.
- The three cities with the largest year-over-year gains were San Francisco, Portland, and Denver, with gains of 11% each.
