Dive Brief:

• Home prices in the U.S. are 0.3% off the market’s June 2006 peak after rising 1.1% from October to November and 5.7% from the start of 2016, according to a new report by Black Knight Financial Services.

• The company’s Home Price Index reached $267,000 in November, up 0.2% from October. November marked the 55th-straight month of home price appreciation.

• New York City continued to lead major U.S. metros in home price appreciation (1.4%), followed by Dallas (0.5%) and Boston (0.5%). 

Dive Insight:

The general surge in home prices nationwide is showing no sign of abating as demand continues to grow ahead of supply.

This trend was underlined by recent data reporting a slight drop-off in existing- and new-home sales in December, for which low supply and elevated prices were partially credited.

Still, growth is expected this year, albeit at a slower pace, as the market remains supported by robust demand, supply shortages and limited lot availability.

Zillow reported last month that for-sale inventory fell 5.9% in November compared to the year-earlier period and was at the lowest levels recorded by the company since it started tracking in January 2010. It marked the 22nd-straight month of inventory declines.

While the market fundamentals remain firm, there are concerns that growth this year could be dampened by higher mortgage rates and the effects of low levels of supply and skilled labor.

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