Home prices in the top 20 U.S. cities rose by 5.8% from a year earlier in November 2015, the largest advance since July 2014, and well above the 4.2% pace of increase observed between November 2013 and November 2014.
All 20 cities in the index showed a year-over-year gain, with double-digit annual increases in Denver (10.9%) and San Francisco (11%). Chicago had the smallest increase at 2%. With equity market volatility giving an added boost to the US Treasury market, low borrowing costs could continue to propel home prices higher. Even with the steady price advances seen to date, it is important to remember that the 20-city metro index is still off 11% from its highs.