Home Prices Rise to a New High
Home prices continued to rise to new highs in November, according to the S&P CoreLogic Case-Shiller's broadest survey.
According to survey, national home prices rose 6.2 percent annually in November, up from 6.1 percent from October. CNBC reports that another S&P index of the 20 largest U.S. markets came in higher than analysts expected in November, at a 6.4 percent gain.
"Home prices continue to rise three times faster than the rate of inflation," says David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices.
Blitzer blames the continued lack of supply for the price gains, citing a very slow recovery in the home construction market. Home builders are ramping up production but are still not at even historically normal levels, never mind the huge pent-up demand in the market.