Home values in 20 U.S. cities rose at faster pace
A limited supply of properties for sale has helped prop up home values, boosting the household wealth levels of U.S. homeowners in the process. Faster wage growth and continued low borrowing costs will be needed to keep low-income and first-time buyers in the market and provide the next leg of growth in the housing recovery.
The S&P/Case-Shiller index is based on a three-month average, which means the October figure was also influenced by transactions in September and August.
All 20 cities in the index showed a year-over-year increase, led by gains of 10.9 percent in San Francisco, Denver and Portland, Oregon. Twelve cities saw year-to-year prices climb at a faster rate than in September. Chicago showed the smallest increase, at 1.3 percent.
On a monthly basis, home prices in the 20-city index adjusted for seasonal variations increased 0.8 percent in October after climbing 0.5 percent the month before.
Property prices rose in all 20 U.S. areas in October from a month earlier, led by 1.3 percent gains in San Francisco, Seattle and Tampa, Florida. At 0.2 percent, the smallest increases were registered in San Diego, Detroit and Las Vegas.
Unadjusted, values climbed 0.1 percent in the 20-city index after a 0.2 percent gain. ■