IRVINE, Calif.–The pace of housing price increases continues, even as a new survey shows demand for housing at its highest point in two years.
The S&P/CoreLogic Case-Shiller 20-city index of home values rose 5.3% compared to a year ago for the three-month period ending in November, an increase from the 5.1% increase that had been reported in October. The index rose 0.2% during the month, or a 0.9% gain when seasonally adjusted. S&P/CoreLogic said the national price index rose 5.6% for the year, up from 5.5% in October, and a seasonally adjusted 0.8% for the month.
The cities seeing the strongest price gains continue to be Seattle, Portland and Denver.
Meanwhile, the Redfin Housing Demand Index increased 15.1% in December to its highest level since January 2013, which was the first month measured by the Redfin Demand Index.
“In general, buyers are attracted to brand-new listings,” said Redfin chief economist Nela Richardson in a statement. “In December, we started seeing homes that spent time on the market, perhaps because they were not in the hottest neighborhood or needed renovation, finally get offers. Based on the number of sellers who’ve contacted Redfin this month, we expect a sizeable increase in new listings in the next two months. With new listings on the way and this year’s buyers willing to take a look at older inventory, we anticipate that sales in early 2017 will be strong.”
Compared to the previous December, homebuyer demand was up 26.3%, buoyed by a 36.4% year-over-year increase in homebuyers requesting tours and 10.2% year-over-year increase in buyers making offers.
Redfin said that among the metros tracked by Demand Index, San Francisco posted the biggest increase in demand compared to 2015, with its Demand Index up 114.1% to a level of 102 in December. Los Angeles posted the biggest month-over-month increase in demand, up 38.1% in December.