U.S. Home-Price Growth Accelerated in September -- Case-Shiller
November 24 2020 - 8:40AM
Dow Jones News
By Nicole Friedman
Home-price growth accelerated in September, as a widespread
shortage of homes for sale spurred competition among home
buyers.
The S&P CoreLogic Case-Shiller National Home Price Index,
which measures average home prices in major metropolitan areas
across the nation, rose 7% in the year that ended in September, up
from a 5.8% annual rate the prior month. September marked the
highest annual growth rate since May 2014.
Sales of previously owned homes, which make up the bulk of the
housing market, rose 9.4% in September from a month earlier to the
highest level since 2006, according to the National Association of
Realtors. Record-low mortgage rates have increased demand, while
the supply of homes for sale has remained low, especially at
affordable price points.
"The delayed spring homebuying season fueled sales well into
October and past the time when they would normally begin to slow
down," said George Ratiu, senior economist for Realtor.com. "As the
number of homes for sale keeps shrinking to new record lows, prices
will continue to rise at a quick pace."
The Case-Shiller 10-city index gained 6.2% over the year ended
in September, compared with a 4.9% increase in August. The 20-city
index rose 6.6%, after an annual gain of 5.3% in August.
Economists surveyed by The Wall Street Journal expected the
20-city index to gain 5.6%.
The 20-city index measured 19 cities in September due to
transaction reporting delays in Wayne County, Mich., according to
S&P Dow Jones Indices. Price growth accelerated in all of the
19 cities.
Phoenix had the fastest home-price growth in the country for the
16th straight month, at 11.4%, followed by Seattle at 10.1%.
A separate measure of home-price growth by the Federal Housing
Finance Agency also released Tuesday found a 9.1% increase in home
prices in September from a year earlier.
News Corp, parent of The Wall Street Journal, operates
Realtor.com.
Write to Nicole Friedman at nicole.friedman@wsj.com
(END) Dow Jones Newswires
November 24, 2020 09:25 ET (14:25 GMT)
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