Home Prices See Best Yearly Gain Since 2006

Home prices rose in November to rack up their best yearly gain since the housing crisis began, a further sign that the sector is on the mend.  The S&P/Case Shiller composite index of 20 metropolitan areas gained 0.6 percent in November on a seasonally adjusted basis, in line with economists' forecasts.  Prices in the 20 cities rose 5.5 percent year over year, making for the strongest yearly price increase since August 2006 when prices were on their way down.

"This is continuing a trend in place for the better part of a year," said Omair Sharif, U.S. economist at RBS Securities in New York. "This is another indication that the housing rebound is fairly entrenched at this point."

The housing market became a bright spot for the economy last year as prices rose and inventory tightened. The sector is expected to contribute to economic growth in 2013, though a number of challenges remain, including tight access to mortgages and on-going foreclosures.

It was the 10th month in a row that prices have increased, the longest string of gains since before 2006. Last year's rise in prices beat a nine-month consecutive run in 2009 and 2010, when the market was boosted by a homebuyer tax credit.
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