Home price appreciation moderates ever so slightly in November
|Home Prices Are Still Rising Rapidly
The S&P CoreLogic Case-Shiller National Home Price Index (HPI) rose 1.1% in November, continuing its recent string of slightly moderating monthly gains. The year-over-year change in the National HPI slowed to 18.8%, from 19.0% the prior month. Housing was among the first areas to see a surge in prices as the economy reopened. Home prices have been pulled higher by a dramatic shift in the demand for housing and the more active role investors are playing in single-family housing markets. Markets where investors have been particularly active, such as Phoenix, Tampa, Miami, Dallas, Atlanta and Charlotte, have consistently posted some of the largest increases in home prices. These markets are also seeing strong economic growth and rapid in-migration from other parts of the country, which means home buyers are clashing with investors to a greater degree than in other markets.
Home prices are rising faster in rapidly growing major metropolitan areas than they are nationwide. The fastest growth over the past year has been in Phoenix, Tampa, Miami, Las Vegas and Dallas. These cities are attracting new residents from higher cost areas, such as San Francisco, Los Angeles, New York, Boston and Chicago. While Los Angeles and San Francisco are still seeing home prices rise in line with the nation, many other metros in the Northeast and Midwest have seen home prices rise more modestly, which is one reason why the 10-City Composite is now moderating more than the 20-City Composite.
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