Case-Shiller Home Price Index Shows Strong Rise

Prices for existing homes rose a strong 0.7 percent in November to just beat expectations and match October's gain, according to Case-Shiller's 20-city adjusted index. Year-on-year, the index (both adjusted and unadjusted) rose a very strong 6.4 percent.

San Francisco easily leads the monthly gain at 1.8 percent which follows 1.3 percent gains in the prior 2 months. Year-on-year, it's Seattle that continues to lead at 12.7 percent rates the last 2 reports followed by Las Vegas at 10.6 percent and 10.2 percent. The softest showings continue to come from Washington, D.C. at a year-on-year plus 3.3 percent with Chicago at 3.6 percent.

But even the softest rates are easily above inflation rates and underscore the strength of housing demand and home prices. A limited number of homes on the resale market is a positive factor for prices though this is an increasing negative for sales which, in contrast to sales acceleration in the new home market, have in fact been flat.

Recent History Of This Indicator:
November's Case-Shiller report is expected to show a solid 0.6 percent gain for the adjusted 20-city index in what would underscore the strength of home-price appreciation which was one of the strongest aspects of the 2017 economy. The consensus for the unadjusted year-on-year rate is 6.4 percent.