Home prices in 20 U.S. cities maintained a steady pace of increases in October while a gauge of nationwide property values rose by the most since mid-2014, according to S&P CoreLogic Case-Shiller data released Tuesday.
- 20-city property values index rose 5.1 percent from October 2015 (forecast was 5 percent) after a 5 percent gain in the year through September
- National home-price gauge increased 5.6 percent from 12 months earlier, the biggest gain since July 2014, to a record 185.06; the measure first exceeded the 2006 pre-recession peak in September
- On a monthly basis, the seasonally adjusted 20-city index increased 0.6 percent (forecast was 0.5 percent) from prior month after a 0.5 percent gain
Lean housing inventory has continued to put upward pressure on home values at the same time steady hiring has lifted demand, resulting in two years of steady gains in property prices of around 5 percent. A post-election spike in borrowing costs could reduce housing affordability until home-price appreciation slows. The prospects of faster income growth in a tight job market may also make higher interest rates easier to manage. Read More…