Home prices continue to show market recovery

Jan. 28, 2014 at 12:43 PM
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NEW YORK, Jan. 28 (UPI) -- U.S. home prices rose nearly 14 percent in November from a year earlier, the S&P/Case-Shiller monthly report revealed Tuesday.

Prices in the 10-city composite index rose 13.8 percent, while prices in the 20-city composite home price indexes rose 13.8 percent year-over-year, the report said.

The index in November included two standout increases, the report said. In Dallas, the year-over-year gain in November was 9.9 percent, the highest annual gain for the city since 2000. In Chicago, the annual gain came to 11 percent, the highest rate for the windy city since December 1988.

On a monthly basis, both indexes declined 0.1 percent, notching the first monthly decline since November 2012.

Out of 20 cities in the larger composite index, nine posted positive monthly returns. Seven of those posting gains were Sun Belt cities. In addition, Boston and Cleveland posted monthly gains. Prices in Minneapolis and San Diego were "relatively flat," the report said.

"November was a good month for home prices. Despite the slight decline, the 10-city and 20-city composites showed their best November performance since 2005," said David Blitzer, chairman of the S&P Index Committee.

"Prices typically weaken as we move closer to winter," Blitzer said, noting Las Vegas, Los Angeles and Phoenix have posted gains for 20 or more consecutive months.

The trend in year-over-year data since June 2012 has remained upward with the Sun Belt cities setting the pace.

Eight of the top nine gainers were Sun Belt locations, including Atlanta with a gain of 18.5 percent, Las Vegas (27.3 percent), Los Angeles (21.6 percent), Miami (16.5 percent), Phoenix (16.7 percent), San Diego (18.7 percent), San Francisco (23.2 percent) and Tampa, Fla. (15.7 percent), the report said.

In addition, Detroit "continues to recover," the report said, although it remains the one city in the 20-city index with home prices below its 2000 level.

Double-digit annual gains were posted by the top nine cities, plus Chicago with an 11 percent gain, Detroit (17.3 percent), Minneapolis (10.5 percent), Portland, Ore., (12.5 percent) and Seattle (12.4 percent).

The 20-city index also includes Cleveland (6 percent), Dallas (9.9 percent), Denver (8.9 percent), New York (6 percent), and Washington. (7.8 percent).

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