Two new data reports tracking the housing market in November have recorded a mild but continued home price acceleration.
The S&P Cotality Case-Shiller U.S. National Home Price NSA Index reported a 1.4% annual gain in November, in line with the previous month. The 10-City Composite annual increase came in at 2.0%, up from 1.9% the previous month, while the 20-City Composite posted a 1.4% year-over-year gain, up from 1.3% in the previous month.
Prior to the seasonal adjustment, the National Index saw a drop of 0.1% month-over-month and the 20-City Composite fell 0.03%, while the 10-City Composite increased 0.1%. After the seasonal adjustment, the National Index posted a 0.4% increase while the 10-City and 20-City Composites posted increases of 0.5%.
Chicago, New York and Cleveland reported the greatest gains with year-over-year price increases of 5.7%, 5.0% and 3.4%, respectively. Tampa posted the smallest year-over-year growth of 3.9%.
“November’s results confirm that the housing market has entered a period of tepid growth,” says Nicholas Godec, head of fixed income tradables and commodities at S&P Dow Jones Indices. “High mortgage rates continue to cast a long shadow over housing. This elevated financing cost continues to cap home price growth. Inflation has erased most nominal gains, leaving home values essentially flat in real terms.”
Separately, the Federal Housing Finance Agency reported home prices rose 0.6% in November from the previous month and were also up 1.9% from one year earlier.
For the nine census divisions, seasonally adjusted monthly home price changes ranged from 0.0 percent in the Middle Atlantic division to +1.1% in the East South Central division. The 12-month changes ranged from -0.4% in the Pacific division to +5.1% in the East North Central division.
Once again, FHFA Director Bill Pulte did not comment on the continued home price acceleration.
