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Demand is up, inventory is down, and home prices are on the rise. According to the Case-Shiller U.S. National Home Price Index, home prices experienced the highest gain in November since February 2018. This trend is not limited to any region: All 20 metro areas measured by the S&P experienced an increase in the median price of a home with Seattle and Charlotte, North Carolina, leading the pack in home price appreciation. And with no end to the affordable housing shortage in sight, experts expect prices to continue increasing.
The Case-Shiller U.S. National Home Price Index, reported by S&P Dow Jones Indices, rose at a seasonally adjusted annual growth rate of 6.2% in November, following a 5.1% increase in October. It was the highest gain since February 2018. On a year-over-year basis, the Case-Shiller U.S. National Home Price NSA Index posted a 3.5% annual gain in November, up from 3.2% in October. After the slowdown in the early of 2019, home price appreciation has accelerated in the last two months due to tight inventory and strong demand. Home prices are expected to continue rising as tight inventory remains a concern.
Meanwhile, the Home Price Index, released by the Federal Housing Finance Agency (FHFA), rose at a seasonally adjusted annual rate of 2.7% in November, following a 4.3% increase in October. On a year-over-year basis, the FHFA Home Price NSA Index rose by 4.9% in November, after an increase of 5.2% in October, marking a slowdown from the previous month.
