Home prices unaffected by the winter

January 30th, 2014

Home prices rose year over year in November despite seasonal trends that normally dampen price growth.

The S&P/Case-Shiller Home Price Indices for November showed an increase in both the 10- and 20-city composites.

The 10-city composite saw a 13.8 percent increase year over year in November, while the 20-city composite went up 13.7 percent year over year. Month over month, there was a minor decline of 0.1 percent. There were gains in nine of the 20 recorded cities, with seven of those cities located in the Sun Belt.

Dallas had its highest annual increase since the creation of the indices in 2000 – at 9.9 percent. Chicago also made waves with an 11 percent annual gain, the largest increase for the city since 1998.

“November was a good month for home prices,” said David Blitzer, chairman of the Index¬†Committee at S&P Dow Jones Indices. “Despite the slight decline, the 10-city and 20-city composites showed their best November performance since 2005.”

Blitzer noted that prices usually drop in the winter, as many buyers wait for warmer weather to continue their search and sellers adjust their prices to demand. However, the seasonal trend was not as visible in 2013.