Low inventory and mortgage rates pushed home-price gains to a 30-month high in December, according to the S&P/Case-Shiller U.S. National Home Price Index.
The index, which measures all nine U.S. census divisions, found that home prices rose 5.8 percent year over year, up from November’s 5.6 percent annual gain. The December rise was the highest annual increase since June 2014, when it rose 6.3 percent vs. to June 2013.
A poll by Reuters showed that the index was expected to rise 5.3 percent in December, after rising by the same amount a month earlier.
The S&P/Case Shiller 20-city composite index, which tracks the nation’s largest cities, gained 5.6 percent year over year, up from 5.2 percent the previous month. Seattle, Portland, Oregon, and Denver once again topped the charts with the largest year-over-year gains. Seattle continued to lead the pack, rising at an annualized rate of 10.8 percent.
Of the nation’s 20 largest cities, seven reached their all-time highs in December: Seattle, Portland, Denver, Boston, Charlotte, North Carolina, San Francisco and Dallas.
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