Annualized US single-family home prices rose more than expected in November and at the fastest pace in 16 months, a closely watched survey showed on Tuesday.
The S&P/Case Shiller composite index of 20 metropolitan areas rose 5.8% in November on a year-over-year basis compared with 5.5% the month before.
That was just above the 5.7% estimate from a Reuters poll of economists and marked the largest such increase since July 2014.
"Home prices extended their gains, supported by continued low mortgage rates, tight supplies and an improving labor market," said David M. Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices.
Prices rose 0.9% in November from October on a seasonally adjusted basis, the survey showed, topping expectations for a rise of 0.8%. That was the fastest monthly gain since March.
On a non-seasonally adjusted basis, prices rose 0.1% from October. Still, home prices nationally remain 4.8% below their record level from July 2006 before the housing market crash, although they have climbed 29.2% from their post-recession bottom in January 2012.
