Home Prices Up 13.6% Year-Over-Year, Biggest Gain Since Early 2006

Home Prices Up 13.6% Year-Over-Year, an 8-Year HighThe pace of home price gains is easing, but October’s figures according to a closely-monitored measure still shows robust growth compared to a year ago, marking an eight-year high.
On a year-over-year basis, home prices were up 13.61 percent in October, according to the S&P Case-Shiller 20-city home price index. The index climbed 1.05 percent month-over-month in October.
This beat expectations for a 0.95 percent month-over-month jump, and a 13.45 percent year-over-year increase. This was the biggest gain since February 2006.
On a non-seasonally adjusted basis, however, home prices were up 0.2 percent on the month.
“Home prices increased again in October,” said David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices. “Both Composites’ annual returns (20-city and 10-city indices) have been in double-digit territory since March 2013 and increasing; now up 13.6% in the year ending in October. However, monthly numbers show we are living on borrowed time and the boom is fading.”
September home prices were revised slightly downward to show a 0.98 percent month-over-month increase, and a 13.25 percent year-over-year rise. This compares with an initial reading of a 1.03 percent month-over-month, and a 13.29 percent year-over-year jump.
Home prices have been surging for 20 consecutive months, but economists and housing market experts caution that growth will ease steadily over the next several months as mortgage rates are expected to rise and lending standards tighten. That combination will likely slow down demand for homes in many markets.

Leave a Reply

Your email address will not be published. Required fields are marked *