Home Prices See 4.3% Rise Year-Over-Year in October

Home Prices See 4.3% Rise Year-Over-Year in OctoberHome prices jumped 4.3 percent in the 12 months ending in October, according to the just-released 20-city index from S&P/Case-Shiller.
The increase outperformed analysts’ expectations.
Both S&P/Case-Shiller‘s 10- and 20-city indices recorded respective annual returns of +3.4 percent and +4.3 percent in October 2012 – larger than the +2.1 percent and +3.0 percent annual rates posted for September 2012.
In 19 of the 20 cities, annual returns in October were higher than September. Chicago and New York were the only two cities with negative annual returns in October. Phoenix home prices rose for the 13th month in a row. San Diego was second best with nine consecutive monthly gains.
Nonetheless, expected seasonal weakness did have an impact as 12 of the 20 cities posted monthly declines in home prices in October, according to the widely-watched measure.
“The October monthly numbers were weaker than September as 12 cities saw prices drop compared to seven the month before.” said David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices. “The five which turned down in October but not in September, were Atlanta, Dallas, Miami, Minneapolis and Seattle. Among all 20 cities, Chicago was the weakest with prices dropping 1.5%, followed by Boston where prices fell 1.4%. Las Vegas saw the strongest one-month gain with prices up 2.8%.”
Annual rates of change in home prices are a better indicator of housing market’s performance, Blitzer said. That’s because home prices tend to be lower in fall and winter than in spring and summer.

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