Home prices rose for the 10th consecutive month in November as housing inventory remained painfully low.
Prices increased 5.1% nationally in November when compared with the previous year, the S&P CoreLogic Case-Shiller index showed Tuesday. That is up from the 4.7% annual increase recorded the prior month. On a monthly basis, prices rose 0.2% on a seasonally adjusted basis, according to the index.
The 10-city composite, which encompasses Los Angeles, Miami and New York, rose 6.2% annually, compared with an increase of 5.7% in October. The 20-city composite, which also tracks housing prices in Dallas and Seattle, posted an annual gain of 5.4%, which also marks an increase from the 4.9% figure recorded the previous month.
There was a major discrepancy in the price gains in the 20 cities: Detroit saw an 8.2% annual gain, followed by San Diego with an 8% increase.
“Barring a late surge from another market, those cities will vie for the ‘housing market of the year’ as the best performing city in our composite,” said Brian Luke, head of commodities, real and digital assets at S&P DJI, in a release.
In total, six cities registered new all-time highs in November – Miami, Tampa, Atlanta, Charlotte, New York and Cleveland. Home prices only fell in Portland, dropping 0.7% from the prior year.
The Case-Shiller index reports with a two-month delay, meaning it may not capture the latest ongoings in the market.
The interest-rate-sensitive housing market entered a deep freeze last year in the wake of the Federal Reserve’s aggressive interest-rate hike campaign. But prices have quickly recovered as buyers adjust to higher mortgage rates and compete for a limited supply of homes.
The problem is unlikely to be resolved anytime soon. With mortgage rates hovering near the highest level in two decades, sellers who locked in a low rate before the pandemic began have been reluctant to sell, leaving few options for eager would-be buyers.
Available home supply is still down a stunning 34.3% from the typical amount before the COVID-19 pandemic began in early 2020, despite a recent drop in mortgage rates, according to a separate report published by Realtor.com.