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US home prices rise 5.8% in November: S&P/Case-Shiller

A home is offered for sale in the Bucktown neighborhood in Chicago.
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A home is offered for sale in the Bucktown neighborhood in Chicago.

U.S. home prices continued to rise, ticking up at a faster clip in November than analysts expected, according to a report out Tuesday.

The S&P/Case-Shiller 20-City Composite rose 5.8 percent year over year in November. That was above consensus estimates for a 5.6-percent jump and faster than the 5.5-percent increase in October.

"Home prices extended their gains, supported by continued low mortgage rates, tight supplies and an improving labor market," David M. Blitzer, chairman of the Index Committee at S&P Dow Jones Indices, said in a statement.

"Sales of existing homes were up 6.5% in 2015 vs. 2014, and the number of homes on the market averaged about a 4.8 months' supply during the year; both numbers suggest a seller's market," he added.

The biggest gains in prices continue to be in Portland, Oregon, San Francisco and Denver, S&P/Case Shiller reported.

Portland saw the biggest rise for the month, up 11.1 percent. San Francisco and Denver trailed just behind at 11 percent and 10.9 percent, respectively.

Altogether, 14 cities put up better price gains in November than they did in the previous month.

Zillow Chief Economist Svenja Gudell said Tuesday the housing market looks set to be as close to "normal" as it has been in some time.

"Home value growth has largely stabilized at a sustainable level and the runaway appreciation that marked the last few years has passed, even as some markets remain much hotter than others," she said in a statement.

The slowdown in rental growth could give renters "breathing room" and potentially make it easier for them to transition to homeownership, she added.