This is of course both good and bad news.
Unfortunately for some this price uptick will make it even more difficult to get into a home. And with interest rates in the short to medium term moving up this could get even tougher.
On the other hand, for homeowners it’s mostly a good thing. Having held a home for a decade with no to negative real return during that time, a little bit of upside feels good.
The big issue here however is that the housing market has been horribly warped by the government and Fed policy over the last 12 years. We’re not done dealing with this. Not by a long shot.
The numbers: The S&P/Case-Shiller 20-city index rose a seasonally adjusted 0.7% in the three-month period ending in November compared to the same period ending in October, and was up 6.4% compared to a year before. The national index rose a seasonally adjusted 0.7% for the month, and 6.2% for the year.
What happened: Both annual increases were higher than in the prior month’s release. The 20-city index rose 6.3% in the three-month period ending in October, for example. Surging prices are all about limited supply of homes to buy.