You are here

US home price growth slows further in October: S&P/Case-Shiller

[NEW YORK] US single-family home price appreciation slowed less than forecast in October, as there were hints of some re-acceleration in home prices in some cities by year-end, according to a closely watched survey released on Tuesday.

The S&P/Case Shiller composite index of 20 metropolitan areas gained 4.5 per cent in October from the prior year, compared with a revised 4.8 per cent increase in September. A Reuters poll of economists forecast a 4.4 per cent increase.

On a seasonally adjusted monthly basis, prices in the 20 cities rose 0.8 per cent for the month. A Reuters poll of economists had forecast an increase of 0.4 per cent.

However, non-seasonally adjusted prices fell 0.1 per cent in the 20 cities on a monthly basis, Analysts had expected them to be unchanged. "After a long period when home prices rose, but at a slower pace with each passing month, we are seeing hints that prices could end 2014 on a strong note and accelerate into 2015," David Blitzer, chairman of the index committee at S&P Dow Jones Indices, said in a statement.

Market voices on:

A broader measure of national housing market activity rose at a 4.6 per cent clip on a year-over-year basis, compared with a 4.8 per cent rate in September.

The seasonally adjusted 10-city gauge rose 0.7 per cent in October versus a revised 0.2 per cent gain in September, while the non-adjusted 10-city index dipped 0.1 per cent for a second straight month in October.