Home prices extended a winning streak in November, with 2013 shaping up as the best year for gains since 2005, according to the S&P/Case-Shiller indexes.
The composite 20-city home price index, a key gauge of U.S. home prices, was up 13.7 percent in November from a year earlier. All 20 cities have posted year-over-year gains for 11 straight months.
Prices in the 20-city index were 0.1 percent lower than the prior month, but that’s mostly due to the weaker winter selling season. Adjusted for seasonal variations, prices were 0.9 percent higher month-over-month. Nine of the 20 cities posted a monthly declines, though on a seasonally adjusted basis priced no city saw a drop.
Though home-price gains have been strong, the Case-Shiller data are lagged. Many expect increases to moderate this year.
“The rapid gains in house prices over the past year are the result of low inventories of homes for sale and strengthening home buying activity. But a slowdown in the pace of house price appreciation is in store for 2014,” said Paul Diggle at Capital Economics. “We are anticipating a meaningful increase in the supply of homes for sale. The survey evidence suggests that rising prices are motivating more owners to list their homes. And judging by the recovery in housing starts, the inventory of new homes for sale is also set to rise strongly.