U.S. home-price growth accelerated in November, with annualized prices at their fastest pace in 16 months, fueled by solid hiring, historically low mortgage rates, and a shortage of houses on the market, according to a closely watched survey released Tuesday.
The Standard & Poor’s/Case-Shiller index of 20 metropolitan areas rose 5.8 percent in November from a year earlier, up from a 5.5 percent 12-month increase recorded in October. It was the largest such increase since mid-2014.
“Home prices extended their gains, supported by continued low mortgage rates, tight supplies, and an improving labor market,” said S&P index committee chairman David Blitzer.
Home prices in the three cities of Dallas, Denver, and Portland, Oregon now are at record highs, the survey showed. San Francisco matched its previous peak, and Charlotte, North Carolina is less than 1 percent from its record high.