U.S. home prices marched steadily higher in November, pushed up by healthy demand for homes and a shrinking supply of available properties.
The Standard & Poor’s CoreLogic Case-Shiller 20-city home index, released today, rose 5.3%, slightly faster than October’s gain of 5.1%, The Associated Press reports.
So far, home sales have remained healthy even as mortgage rates have risen, suggesting homebuyers are trying to lock down purchases before rates increase further. Americans bought existing homes at the fastest pace in nearly a decade in November. Yet the number of homes for sale has fallen to a 17-year low, fueling bidding wars in many cities.
The Case-Shiller index measures prices compared with those in January 2000 and creates a three-month moving average. The November figures are the latest available. The index covers roughly half of U.S. homes, but does not include the Baton Rouge market.
Svenja Gudell, chief economist at housing data provider Zillow, says some relief from higher prices across the U.S. may be on the horizon. Rising mortgage rates and a leveling off of rents in many cities could cool demand for homes in the coming months, potentially slowing price gains.
