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S&P: Further increases expected in US home prices under new administration

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S&P: Further increases expected in US home prices under new administration

The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index logged a 5.6% annual gain in November 2016, up from 5.5% in the previous month.

"With the S&P CoreLogic Case-Shiller National Home Price Index rising at about 5.5% annual rate over the last two-and-a-half years and having reached a new all-time high recently, one can argue that housing has recovered from the boom-bust cycle that began a dozen years ago," David Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices, said in a release.

"The new Administration in Washington is seeking faster economic growth, increased investment in infrastructure, and changes in tax policy which could affect housing and home prices," Blitzer added. "Mortgage rates have increased since the election and stronger economic growth could push them higher. Further gains in personal income and employment may increase the demand for housing and add to price pressures when home prices are already rising about twice as fast as inflation."

The 10-city composite saw a 4.5% annual increase, compared to 4.3% in the previous month, and the 20-city composite logged a 5.3% year-over-year gain compared to 5.1% in October 2016.

Seattle, Denver, and Portland, Ore., had the highest year-over-year increases. Seattle saw a 10.4% year-over-year price increase, followed by Portland and Denver with 10.1% and 8.7% increases, respectively. Eight cities reported higher price increases in the year ended in November 2016 compared to the year ended in October 2016.

On a seasonally adjusted month-over-month basis, the national index rose 0.8%, with both the 10-city composite and 20-city composite logging 0.9% increases. Before seasonal adjustment, the national index rose 0.2% month over month in November 2016, with both the 10-city composite and the 20-city composite notching 0.2% increases.

S&P Dow Jones Indices and S&P Global Market Intelligence are owned by S&P Global Inc.