Standard & Poor's said that its S&P CoreLogic Case-Shiller national home price index jumped 6.2% in October, which increased more than estimates and rose by the most since mid-2014. Demand from would-be buyers has improved a lot, and the supply of properties for sale is shrinking.
The index tracked 20 metro areas, and all the 20 cities showed year-over-year gains. In Seattle, the prices increased 12.7% since October 2015, which is the strongest annual gains. In Las Vegas, the prices were up 10.2%, while in San Diego, the prices rose 8.1%. The smallest price gain occurred in Miami, where the prices increased 0.1%.
After seasonal adjustment, Las Vegas rose most at 1.4%, followed by San Francisco with a 1.2% increase
“Since home prices are rising faster than wages, salaries, and inflation, some areas could see potential home buyers compelled to look at renting,” David M. Blitzer, the managing director and chairman of the index committee at S&P Dow Jones Indices, said this week.
“Home prices continue their climb supported by low inventories and increasing sales,” David Blitzer said. He also mentioned that climb may be interrupted by the Federal Reserve hiking interest rates next year.