Home prices in 20 major U.S. cities rose in November by the most in almost eight years, according to Standard & Poor’s.
S&P’s Case-Shiller index said property prices rose 13.7% from November 2012 in the 20 cities, the most since February 2006, after a 13.6% increase in October. Economists surveyed by Bloomberg News expected a 13.8% increase.
“Home prices have been doing exceptionally well,” Eric Green, global head of foreign exchange and rates at TD Securities USA, told Bloomberg. “Higher borrowing costs and downward pressure from more supply coming on is going to be balanced by the fact that you’re going to continue to see the economy growing, incomes rising and job growth.”
A limited number of properties is helping to sustain home price appreciation even as higher mortgage rates cool demand, Bloomberg reported.
Adjusting for seasonal variations, the Case-Shiller index rose 0.9% from October, after a 1.1% rise the prior month.