U.S. home prices are rising at a quickening pace, according to the S&P CoreLogic Case-Shiller national home price index (not seasonally adjusted) for October released Tuesday. The year-over-year increase of 3.3% was 0.1 percentage points above the September increase.
Home prices jumped by 5.8% year over year in Phoenix, the largest increase among the cities in the index’s 20-city composite group. Prices rose 4.9% in Tampa and 4.8% in Charlotte. San Francisco was the only one of the 20 cities to post a year-over-year price decline. Prices are down 0.4% year over year in the city.
On a non-seasonally adjusted (NSA) basis, the national index rose by 0.1%, and the 10-city and 20-city indexes rose by the same amount month over month. Seasonally adjusted, the 20-city index rose by 0.4% and the 10-city index rose by 0.4%. Year over year, the 20-city change was 2.2%. The consensus economists’ estimate called for the 20-city average home price to rise by 2.2% year over year unadjusted and to rise by 0.4% month over month adjusted.
In all U.S. cities included in the October 20-city home price index, 10 posted NSA month-over-month price increases. Cities posting lower prices were Cleveland (0.5%), Detroit (0.5%), Portland (0.5%), Chicago (0.4%), San Francisco (0.4%), Seattle (0.3%), Las Vegas (0.2%), Minneapolis (0.2%), San Diego (0.2%) and Dallas (down 0.1%). Some of these cities have economies larger than some countries.
Craig Lazzara, Managing Director and Global Head of Index Investment Strategy at S&P Dow Jones Indices, said: “October’s U.S. housing data continue to be reassuring. With October’s 3.3% increase in the national composite index, home prices are currently more than 15% above the pre-financial crisis peak reached in July 2006. October’s results were broad-based, as both our 10- and 20-city composites rose. … As was the case last month, after a long period of decelerating price increases, the national, 10-city, and 20-city composites all rose at a modestly faster rate in October compared to September.”
George Ratiu, senior economist at Realtor.com, commented: “Headed into the winter months, the housing market is offering challenges for many buyers. The inventory of available homes continues shrinking across all price ranges, and prices stay on an upward path, adding pressure on affordability even with favorable mortgage rates. For home shoppers, moving to mid-sized cities in the South and Midwest is providing a path toward better lifestyle amenities and more affordable real estate.”
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