The numbers: Home prices in the 20 biggest U.S. metros rose for the 10th consecutive month, hitting a record high, due to a low number of home listings.
The S&P CoreLogic Case-Shiller 20-city house price index rose 0.1% in November compared to the previous month.
Home prices in the 20 major U.S. metro markets were up 5.4% in the last 12 months ending in November.
A broader measure of home prices, the national index, rose 0.2% in November and was also up 5.1% over the past year. All numbers are seasonally adjusted.
The 20-city and the national index are at an all-time high.
Key details: Detroit posted the biggest year-over-year home-price gains in November. Prices were up 8.2%. The city was the best-performing real-estate market for the third month in a row.
Portland was the only city that saw home prices fall in November.
| Cities | Change from last year |
| Atlanta | 5.9% |
| Boston | 7.1% |
| Charlotte | 7% |
| Chicago | 7% |
| Cleveland | 7.4% |
| Dallas | 1.7% |
| Denver | 1.5% |
| Detroit | 8.2% |
| Las Vegas | 2.1% |
| Los Angeles | 7.2% |
| Miami | 7.2% |
| Minneapolis | 2.7% |
| New York | 7.4% |
| Phoenix | 2.5% |
| Portland | -0.7% |
| San Diego | 8% |
| San Francisco | 2% |
| Seattle | 1.6% |
| Tampa | 3.4% |
| Washington | 4.7% |
| Composite-20 | 5.4% |
A separate report from the Federal Housing Finance Agency also showed home prices rose 0.3% in November from the last month, and were up 6.6% in the past year.
The median price of a resale home was $382,600 in December 2023, and a newly built home was $413,200.
Big picture: Even though mortgage rates were elevated between October and November — which sapped home-buying demand — the persistent and severe lack of supply of homes for sale has resulted in prices rising yet again.
With an imbalance between demand from home buyers and a reluctance among homeowners to sell and give up their ultra-low rate, the dynamic is likely to persist.
Particularly since rates have fallen since November and demand has ticked up, home prices will likely continue to march upwards into the new year.
What S&P said: “November’s year-over-year gain saw the largest growth in U.S. home prices in 2023, with our National Composite rising 5.1%,” Brian D. Luke, head of commodities, real and digital assets at S&P DJI, said in a statement.
Most markets are seeing home prices grow, he added. “The days of markets in the South rising double digits with markets in the Midwest remaining flat are over,” Luke said.
And with mortgage rates falling since November, that could “support further annual gains in home prices,” he added.
What are they saying? “The bigger picture is that house prices have been very strong this year. The small rise in November means that prices are rising at 5.2% y/y, their fastest pace since December 2022,” Thomas Ryan, property economist at Capital Economics, wrote in a note.
Looking ahead: “With mortgage rates now lower and spring home buying demand already lurking, home prices will continue to rise,” Selma Hepp, chief economist at CoreLogic, said in a statement.
That’s “especially considering the outsized pent-up demand for homes coming from young buyers, those who have been waiting for lower rates, and huge influx of immigrants over the last couple of years,” she added.
Market reaction: Stocks
DJIA
SPX
were up in early trading on Tuesday. The yield on the 10-year Treasury note
BX:TMUBMUSD10Y
was over 4%.
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