US home prices continue to rise in November, though sales volume is slowing

Pricing finally climbed back to 2006 levels in September

New York /
Jan.January 31, 2017 12:58 PM

In the face of rising interest rates, national home prices continued to show steady growth in November.

The S&P CoreLogic Case-Shiller Indices, which covers the whole country, show pricing climb 5.6 percent in the 12-month period ending in November, the Wall Street Journal reported.

That was up just a hair from the revised 5.5 percent increase from October.

Markets in the northwest such as Seattle and Portland as well as Denver continued to perform the best as buyers turn away from Silicon Valley for less pricey alternative tech hubs. Seattle showed the biggest increase with 10.4 percent.

Home prices in September finally climbed back to the record set in mid-2006 before the recession, and have been moving upward since.

“One can argue that housing has recovered from the boom-bust cycle that began a dozen years ago,” David Blitzer, managing director at S&P Dow Jones Indices, told the newspaper.

Prices are climbing despite higher mortgage rates, which usually exert downward pressure as it makes the cost of borrowing more expensive. The average rate for a 30-year fixed mortgage began to climb sharply after Election Day, increasing from around 3.5 percent to 4.32 percent at the end of December, according to Freddie Mac.

And the volume of sales has been slowing. New-home sales in December fell by 10.4 percent, according to the Commerce Department. [WSJ]Rich Bockmann


Related Articles

arrow_forward_ios
Of the 110 metro areas with at least half a million people, 29 saw losses in 2020. (iStock)
More urban areas lost population in 2020
More urban areas lost population in 2020
Tomo Kipp, LeBron James, Jeff Conry and the Crystal View Court Mansion. (Getty, iAero, Compass)
Former Coconut Grove mansion of LeBron James sells for $13M
Former Coconut Grove mansion of LeBron James sells for $13M
Lenders are being stingy about granting home equity lines of credit. (iStock)
Home values are up, but just try getting a line of credit
Home values are up, but just try getting a line of credit
(iStock)
Manhattan home prices are rising as Brooklyn’s plateau
Manhattan home prices are rising as Brooklyn’s plateau
Photo illustration of Fredrik Eklund and Dottie Herman (iStock, Getty)
Douglas Elliman expands into tight Texas housing market
Douglas Elliman expands into tight Texas housing market
(iStock)
Hot, hot, hot: Resi market sets new price records in March
Hot, hot, hot: Resi market sets new price records in March
The housing market needs 3.8 million single-family homes to meet current demand (iStock)
US needs 4M homes to meet demand from buyers
US needs 4M homes to meet demand from buyers
Brooklyn saw increases in prices, sales and inventory. (Getty, Two Trees)
Brooklyn’s median sales price hit record high in Q1
Brooklyn’s median sales price hit record high in Q1
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...