Home prices in the U.S. increased by the most in almost eight years, but a small monthly gain shows signs of slower growth.
The 20 U.S. cities tracked for the S&P/Case Shiller Home Price Index increased 13.7 percent year-over-year, the largest increase since February 2006. This comes after the index increased by 13.6 percent for the year ending in October.
Both the 10-city and 20-city composites posted double-digit annual gains. Nine cities increased on an annual basis -- Boston, Chicago, Cleveland, Dallas, Las Vegas, Miami, New York, Tampa and Washington. Boston led with a 9.8 percent annual increase, followed by Cleveland and New York with year-over-year increases of 6.0 percent and 4.9 percent.
Today's report, however, shows a deceleration for home price increases. The two composites dropped 0.1 percent in November, compared to the previous month, marking the first decrease since November 2012.
Of the 20 cities tracked, nine recorded monthly increases. Miami led with a gain of 1.4 percent, while Las Vegas, the previous leader, increased by 0.6 percent, according to the report. Las Vegas, Los Angeles and Phoenix have all posted 20 or more consecutive monthly increases.
David M. Blitzer
"November was a good month for home prices," David M. Blitzer, chairman of the Index Committee at S&P Dow Jones Indices, said in the report. "Despite the slight decline, the 10-City and 20-City Composites showed their best November performance since 2005."
Prices have been increasing annually since June 2012, despite mortgage rate increases last May. Detroit remains the only city with prices below its 2000 level.
Going forward, prices are expected to increase in 2014 but at a slower pace.