Low Supply Drives Ongoing Home Price Gains

“Without more supply, home prices may continue to substantially outpace inflation,” says Blitzer.

NEW YORK CITY—A shortage of product is continuing to drive single-family home prices higher, with the latest S&P CoreLogic Case-Shiller Indices once again showing faster annual gains they they had in the previous month. In turn, that shortage is helping to keep sales volume down, in the view of the National Association of Realtors.

All three Case-Shiller indices—National, 10-City Composite and 20-City Composite—posted higher annual gains in November compared to October, S&P Dow Jones Indices said Tuesday. National represented a 6.2% annual gain for the month, up from 6.1% in October, while the 10-City Composite came in at 6.1% growth year over year, up from 5.9% in the previous month and the 20-City’s Y-O-Y increase was 6.4%, compared to 6.3% in October.