Case-Shiller Home Price Index Not Booming, But Solid

Home-price appreciation may not be booming but it is solid, perhaps the most solid source of increase for household wealth. Case-Shiller's 20-city adjusted index rose a very strong 0.9 percent in November following impressive gains of 0.8 percent (revised) and 0.6 percent in the prior two months. Breadth is very convincing with all 20 cities showing monthly gains for a third month in a row with half posting gains of 1 percent or more in the latest month. Year-on-year, sales came in at plus 5.8 percent for a 3 tenths gain in the month. Leading the way is Portland at a year-on-year gain of 11.1 percent followed by San Francisco, at 11.0 percent, and Denver at 10.9 percent. Chicago, at 2.0 percent, and Washington DC, at 2.1 percent, bring up the rear. FHFA data, shows similar strength and confirm that home prices, which are getting a boost from lack of available homes on the market, are one of the few areas of the economy showing price traction.

Recent History Of This Indicator:
Lack of homes on the market has been helping prices of existing homes, up a year-on-year 5.5 percent in the prior Case-Shiller adjusted 20-city index. And the Econoday consensus is calling for a sizable increase in the November report, up 0.7 percent month-to-month and at 5.7 percent on the year. Home prices may not be booming but they are one of the few price areas showing visible pressure. Note that FHFA house price data will also be released Tuesday morning.