US house prices rise less than expected in November - S&P/Case-Shiller
US house prices rose less than expected in November, according to the S&P/Case-Shiller national home price index.
The 20-city composite index was up 4.7% year-over-year, down from a 5% increase the month before and missing expectations for a 4.9% rise. This marked the slowest rate of annual growth since January 2015.
Las Vegas, Phoenix and Seattle reported the highest year-over-year gains among the 20 cities. Las Vegas led the way with a 12% year-over-year gain, followed by Phoenix with an 8.1% increase and Seattle with a 6.3% jump.
Seven of the 20 cities reported greater price increases in the year ending November 2018 versus the year ending October 2018.
David M. Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices, said: "Home prices are still rising, but more slowly than in recent months. The pace of price increases is being dampened by declining sales of existing homes and weaker affordability. Sales peaked in November 2017 and drifted down through 2018. Affordability reflects higher prices and increased mortgage rates through much of last year. Following a shift in Fed policy in December, mortgage rates backed off to about 4.45% from 4.95%.
"Housing market conditions are mixed while analysts’ comments express concerns that housing is weakening and could affect the broader economy. Current low inventories of homes for sale - about a four-month supply - are supporting home prices. New home construction trends, like sales of existing homes, peaked in late 2017 and are flat to down since then. Stable 2% inflation, continued employment growth, and rising wages are all favourable. Measures of consumer debt and debt service do not suggest any immediate problems."