CoreLogic reported that October 2016 U.S. home prices hit a new high. The S&P/Case-Shiller U.S. National Home Price Index, which measures all nine U.S. census divisions, was also up 5.6% in October from 2015.
The 20-City Composite Home Price Index S&P CoreLogic Case-Shiller also climbed higher by 5.1% in October from 2015. The 20-City Composite Home Price Index is still 7.1% below the July 2006 peak price.
Prices rose the most in Seattle by 10.7%, in Portland by 10.3% but in New York City, prices rose by only 1.7% from 2015 levels.
Home affordability has fallen by 20%-30% since 2012.
The affordability index is based on median incomes, housing prices and mortgage rates.
By most measures, home prices have reached levels only seen during the time preceding the crash back in 2008.
Home sales and prices have benefited from strong demand, which is further supported by very tight supply and still very affordable mortgage rates.
Another reason for the continuing trend in real estate is consumer confidence. The U.S. Consumer Confidence Index surged to 113.7, which is its highest level in 15 years according to the Conference Board.