The S&P/Case Shiller index of home prices in 20 cities increased a seasonally-adjusted 0.6% in November.
Home prices in the metropolitan areas included in the index surged 5.5% compared to the same time last year. That marked the biggest year-over-year price hike since August 2006, Reuters noted.
November’s seasonally-adjusted price rise matched econmists’ estimates. Home prices have risen for ten consecutive months, suggesting that the housing market continues to recovery.
In both 2009 and 2010, home prices rose for nine-consecutive months. Home sales in those years were aided by a federal tax credit for home purchases.
Housing stocks posted gains on the good news. Shares of D.R. Horton (NYSE:DHI) surged more than 9%, while Ryland (NYSE:RYL) rose more than 2% and Toll Brothers (NYSE:TOL) gained almost 1% in Tuesday midday trading.