Economists predict home prices will continue to increase throughout 2013, with year-over-year growth remaining strong. Lower month-over-month prices were expected when the market slowed down in the fall, as noted in Standard and Poor's/Case Shiller's Home Price Indices for the month of November.
According to the report, the 10-City Composite posted a monthly decline of 0.2 percent, though Boston, New York and Chicago saw the most notable decreases in prices. When looking at home prices on a year-over-year measurement, a 4.5 percent increase was reported.
Additionally, the 20-City Composite saw a slight decline from home prices recorded in October, falling 0.1 percent. Despite the month-over-month decline, prices gained moved forward 5.5 percent from levels seen in November 2011. Data showed 19 cities posted gains in the 12 months ending in November, as only New York failed to see an annual improvement.
"The November monthly figures were stronger than October, with 10 cities seeing rising prices versus seven the month before." said David Blitzer, chairman of the index committee at S&P Dow Jones Indices.
When looking at individual cities, prices in New York fell 1.1 percent from October levels and were down 1.2 percent from November 2011. Phoenix saw a 1.4 percent month-over-month gain, while it posted a notable 22.8 percent increase in home prices from the same month a year before.
While only one city posted negative change over the last year, Tampa, Washington, Portland, Detroit, Dallas, Cleveland, Chicago, Charlotte and Boston saw lower prices between October and November. It is important to note that all the declines in home prices on a monthly basis were below 1.5 percent.
"Housing is clearly recovering," said Blitzer. "Prices are rising as are both new and existing home sales. Existing home sales in November were 5.0 million, highest since November 2009. New home sales at 398,000 were the highest since June 2010. These figures confirm that housing is contributing to economic growth.
Another recent property data report that posted monthly declines but annual gains includes the National Association of Realtors Pending Home Sales Index. Despite a 4.3 percent slip in December from November, contract signings were 6.9 percent higher in comparison to the index recorded in December 2011.