Home prices in major U.S. metropolitan areas saw slightly faster annual growth in the month of October, according to a report released by Standard & Poor's on Tuesday.
The report said the S&P CoreLogic Case-Shiller 20-City Composite Home Price Index increased by 5.1 percent year-over-year in October, reflecting an uptick from the revised 5.0 percent growth in September.
Economists had expected the annual rate of home price growth to come in unchanged compared to 5.1 percent increase originally reported for the previous month.
The 20-City Composite Home Price Index climbed 0.6 percent percent month-over-month in October following an upwardly revised 0.5 percent increase in September.
On a non-seasonally adjusted basis, the index inched up by 0.1 percent in October, matching the uptick seen in the previous month.
The report also said the S&P CoreLogic Case-Shiller U.S. National Home Price Index was up by 5.6 percent year-over-year and 0.2 percent month-over-month in October.
"Home prices and the economy are both enjoying robust numbers," said David M. Blitzer, Managing Director & Chairman of the Index Committee at S&P Dow Jones Indices. "However, mortgage interest rates rose in November and are expected to rise further as home prices continue to out pace gains in wages and personal income."
"With the current high consumer confidence numbers and low unemployment rate, affordability trends do not suggest an immediate reversal in home price trends," he added. "Nevertheless, home prices cannot rise faster than incomes and inflation indefinitely."
Wednesday morning, the National Association of Realtors is scheduled to release a separate report on pending home sales in the month of November.
Pending home sales are expected to climb by 0.5 percent in November after inching up by 0.1 percent in October.
A pending home sale is one in which a contract was signed but not yet closed. Normally, it takes four to six weeks to close a contracted sale.
by RTT Staff Writer
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