United States: Home prices record largest annual gain in over six years
January 29, 2013
In November, the unadjusted S&P/Case-Shiller 20-city home price composite index fell 0.1% over the preceding month. The reading followed a 0.2% price drop in October and was in line with market expectations.
Despite the monthly drop, home prices are now 5.5% above the same month the year before. The reading was up from the 4.2% annual increase recorded in October and represents, in fact, the largest gain in annual terms seen in over six years. Only prices in New York, out of the 20 cities surveyed, were lower over the same month the previous year, whereas the largest increase was seen in Phoenix (+22.8% year-on-year).
In addition, S&P remained very optimistic, indicating that "housing is clearly recovering. Prices are rising as are both new and existing home sales. Existing home sales in November were 5.0 million, the highest since November 2009. New Home sales at 398,000 were the highest since June 2010. These figures confirm that housing is contributing to economic growth".