In December, home prices climbed 5.8 percent on a year-over-year basis, the highest increase since June 2014.
CNBC analyzed the new edition of the S&P/Case-Shiller U.S. National Home Price Index. The 20-city composite index gained 5.6 percent over the last year and was up from 5.2 percent in November. Seven of the 20 cities reached price records in December: Boston, Charlotte, Dallas, Denver, Portland, San Francisco, and Seattle.
Rising mortgage rates and the lack of available homes pushed prices higher.
"While sales of existing single-family homes passed five million units at annual rates in January, the highest since 2007, the inventory of homes for sales remains quite low with a 3.6 month supply," said David Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices. He noted that new home sales were higher than in recent years, at 555,000 in 2016, but still under the average pace of 700,000 since 1990.
Advertisement
Related Stories
Sales
What the NAR Commissions Settlement Means for Home Builders
The legal settlement will improve transparency during the home sales process, mitigate predatory practices, and help preserve profitability for home builders
Sales
Sales and Texting? Know the Rules
Texting your sales prospects en masse can be an efficient way to get your message through if you follow these best practices
Affordability
Will NAR's Landmark Commissions Settlement Lower Housing Costs?
The $418 million deal changes long-standing rules—written and unwritten—that consumers claim inflated sales commissions for home sellers, including new-home builders