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US housing prices sustain growth in October

[WASHINGTON] Housing prices posted modest growth in most parts of the United States in October, according to industry figures released Tuesday.

The S&P Case-Shiller price index of 20 major cities saw a 0.6 per cent increase on a seasonally adjusted basis in all of the metropolitan areas.

The index rose 5.1 per cent over the same month last year, up a tenth of a point over the gain recorded for October.

The broader National Home Price Index was up 5.6 per cent over October 2015, up from 5.4 per cent in September.

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"Home prices and the economy are both enjoying robust numbers," David Blitzer, head of the index committee at Dow Jones S&P Indices, said in a statement.

"However, mortgage interest rates rose in November and are expected to rise further as home prices continue to outpace gains in wages and personal income."

Measures based on median incomes, prices and mortgage rates show affordability has declined 20 to 30 per cent since the market trough of 2012, according to Mr Blitzer, but robust hiring and high consumer confidence suggest a near-term reversal in trends.

AFP

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