Connect to share and comment

Home prices rise 5.5% in November - biggest gain since 2006

Home prices showed strong growth in November from a year earlier.

Clone of house prices upEnlarge
Home prices rose by 5.5 percent in November, the biggest gain since the market started to drop in August 2006. (Joe Raedle/Getty Images)

There's more evidence that the real estate market is on its way to a real recovery. 

Home prices rose for the tenth straight month in November according to the S&P/Case Shiller 20-city index. 

Nineteen out of the 20 metropolitan markets tracked by the survey showed an increase in home prices. Overall prices were 5.5 percent higher than November 2011, reports the Los Angeles Times. 

"Housing is clearly recovering," said David M. Blitzer, chairman of the index committee at S&P Dow Jones Indices. "Prices are rising, as are both new and existing home sales."

The only metropolitan area to see a drop in home prices was New York, which saw a dip of 1.2 percent based on the survey. 

Hard-hit areas in the Southwest are showing the biggest improvement. Prices in Las Vegas rose 10.0 percent over the year and Phoenix showing a 22.8 percent increase.

According to Reuters, November's prices are the strongest gain since the market started to fall in August 2006. 

A smaller inventory of available houses and stronger demand is pushing home prices up for the tenth month in a row, helping to stimulate the overall economy. 

"What we're seeing is really a gradual improvement in the overall economy," Anthony Chan, chief economist for Chase Private Client in New York told Reuters. 

http://www.globalpost.com/dispatch/news/business/130129/home-prices-rise-55-november-biggest-gain-2006