CHICAGO, IL--(Marketwire - Jan 29, 2013) - The continuing rise of U.S. home prices should provide support for consumer confidence in coming months, according to a commentary by BMO Economics. The S&P Case-Shiller home price index rose 0.6 per cent in November, or 5.5 per cent above levels seen a year ago.
"The Index has risen for ten consecutive months, with the 20 largest metropolitan areas seeing prices increase at the quickest pace in over six years," said Jennifer Lee, Senior Economist, BMO Capital Markets. "Fundamental factors -- such as still low borrowing costs, job growth and affordability -- are supporting the increases; foreign-buying, particularly in the Sun Belt regions, is a likely factor as well."
Prices rose on a seasonally-adjusted basis in November -- compared to the previous month -- in 18 of the 20 cities observed in the Index. "Phoenix prices are up 22.8 per cent from a year ago -- by far the largest gain of all the metropolitan areas in the Index," noted Ms. Lee. "Areas such as Las Vegas, L.A., Miami, San Francisco, San Diego and Tampa, where high foreclosures weighed heavily on home prices, have enjoyed a pickup in values for the last 9 to 10 months. As well, Chicago has now snapped a streak of three monthly losses."
|S&P/Case-Shiller Home Price Indices|
|Metropolitan Area||% change, Nov/Oct (SA)||% change, 1-year|
|Source: S&P Dow Jones|