According to a report issued by S&P Dow Jones Indices and CoreLogic U.S. home prices increased in November at a faster pace than the previous month.
“Home prices continue to rise three times faster than the rate of inflation,” said David Blitzer, S&P Dow Jones Indices managing director and chairman of the index committee.
The U.S. National Home Prices NSA Index, covering all nine U.S. census divisions, reported an that the annual change in home prices increased to 6.2% in November, which is up from what was reported for the prior month.
The U.S. National Home Prices NSA Index, is a 10-City Composite showed an annual increase of 6.1%, up from 5.9% the previous month. The 20-City Composite increased 6.4% year-over-year, up from the annual increase of 6.3% in October.
The year-over-year increases reported have been 5% or more for 16 months; the 20-City index has climbed at this pace for 28 months.
The cities reporting the highest increases were:
Seattle, Las Vegas and San Francisco with increases of 12.7%, 10.6% and 9.1%, respectively.
Reasons for the increases are seen to be the result of:
> High construction costs
> The slow rate of construction of single family homes
> Low inventory
> Credit requirements
> Slow increase of mortgage rates