S&P Dow Jones Indices (S&P DJI) informed on Tuesday its
Case-Shiller Home Price Index, which tracks home prices in 20 U.S. metropolitan
areas, recorded a 4.9 per cent y-o-y soar in October, following an unrevised 3.9 per cent y-o-y surge in September. This represented
the strongest annual increase in house prices since November 2022 (+6.9 per
cent).
Economists had anticipated a jump of 4.0 per cent y-o-y.
According to the report, 19 of 20 cities demonstrated y-o-y advances in
prices in October, led by Detroit (+8.1 per cent y-o-y), San Diego (+7.2 per
cent y-o-y) and New York (+7.1 per cent y-o-y). Meanwhile, Portland (-0.6 per
cent y-o-y) was the only city that
showed a y-o-y decline in prices.
The S&P/Case-Shiller U.S. National Home Price Index, which measures
all nine U.S. census divisions, climbed 4.8 per cent y-o-y in October,
following an upwardly revised 4.0 per cent y-o-y rise (from
+3.9 per cent y-o-y) in the previous month.
On m-o-m basis, the U.S. National Index rose 0.2 per cent, and the
20-City Composites edged up 0.1 per cent.
Commenting on the latest data, Brian D. Luke, Head of Commodities, Real
& Digital assets at S&P DJI, noted the October report depicts a broad-based home price appreciation across the country and reflects trendline growth
compared to historical returns and little disparity among cities and regions. “Home
prices leaned into the highest mortgage rates recorded in this market cycle and
continued to push higher,” he noted, adding that with mortgage rates easing and
the Federal Reserve guiding toward a slightly more accommodative stance,
homeowners may be poised to see more appreciation.