The Case-Shiller Home Price Index, one of the most closely watched measures of home values, recorded a 0.1% decline fromOctober to November before seasonal adjustments. After accounting for normal seasonal patterns, prices rose 0.4%. On anannual basis, national home prices remain 1.4% higher than a year ago, matching October’s year-over-year gain.
The FHFA Home Price Index, which tracks homes financed with conventional mortgages and excludes cash and jumbopurchases, painted an even stronger picture. Prices rose 0.6% month over month on a seasonally adjusted basis and were up1.9% compared to last year.
What’s the bottom line?
Buyer demand has picked up as mortgage rates eased in recent months, helping support home prices. Atthe same time, homebuilders have scaled back activity and cannot quickly add new supply, as new homes must move throughthe full permitting, construction, and completion process. If mortgage rates continue to trend lower, renewed buyer demandcould place additional upward pressure on home prices.
