The S&P/Case-Shiller home price index increased 5.8% year-on-year in November, exceeding expectations for a 5.7% rise, after a 5.5% gain in October.

Portland, San Francisco and Denver were the largest contributors to the rise, where prices climbed by 11.1%, 11.0% and 10.9%, respectively.

"Home prices extended their gains, supported by continued low mortgage rates, tight supplies and an improving labour market," chairman of the index committee at S&P Dow Jones Indices David Blitzer said.

On a monthly basis, the S&P/Case-Shiller home price index rose by a seasonally adjusted 0.1% rate in November.

The S&P/Case-Shiller home price index measures single-family home prices in 20 U.S. cities.