Jim R. Bounds/Bloomberg via Getty Images
The numbers: The S&P/Case-Shiller 20-city index rose a seasonally adjusted 0.7% in the three-month period ending in November compared to the same period ending in October, and was up 6.4% compared to a year before. The national index rose a seasonally adjusted 0.7% for the month, and 6.2% for the year.
What happened: Both annual increases were higher than in the prior month’s release. The 20-city index rose 6.3% in the three-month period ending in October, for example. Surging prices are all about limited supply of homes to buy.
But there’s another interesting development. The cities “that enjoyed the fastest price increases before the 2007-2009 financial crisis are again among those cities experiencing the largest gains,” said David Blitzer, chair of the index committee at S&P Dow Jones Indices. Blitzer named San Diego, Los Angeles, Miami and Las Vegas.
Big picture: Home prices continue to surge well ahead of inflation and wage gains. Prices were hottest in Seattle, where they rose 12.7% compared to a year ago, and in Las Vegas, where they rose 10.6% for the year. Even San Francisco’s short blip seems to be over: it was in third place, with a 9.1% annual increase. Such lofty gains don’t seem sustainable, even if they’re driven by true demand and limited supply, rather than a bubble mentality.
| Metro | 12-month change |
| Atlanta | 5.2% |
| Boston | 6.3% |
| Charlotte | 5.8% |
| Chicago | 3.6% |
| Cleveland | 4.1% |
| Dallas | 7.0% |
| Denver | 7.0% |
| Detroit | 7.0% |
| Las Vegas | 10.6% |
| Los Angeles | 7.0% |
| Miami | 4.1% |
| Minneapolis | 5.4% |
| New York | 5.7% |
| Phoenix | 5.6% |
| Portland | 6.9% |
| San Diego | 7.4% |
| San Francisco | 9.1% |
| Seattle | 12.7% |
| Tampa | 7.1% |
| Washington | 3.3% |
Case-Shiller’s conclusion that prices are on fire has been echoed elsewhere. On Monday, real estate data provider Black Knight said U.S. home prices rose 6.44% compared to a year ago in November.
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