WASHINGTON (12/30/15)--Existing-home prices rose more than 5.5% on an annual basis in October, according to the S&P/Case-Shiller index, released Tuesday.
The 20-city composite index climbed to 5.54% from 5.36% during the month, while the 10-city index rose to 5.08% from 4.92% (Economy.com Dec. 29).
The national index also increased, accelerating 5.17% annually in October after posting a 4.85% gain in September.
“House price appreciation maintained an upward trend in October, as the 20-city composite, 10-city composite, and national indexes registered faster year-over-year growth than the previous month,” said Thomas McCartin, Moody’s analyst (Economy.com). “The same handful of cities is leading the pack, most notably San Francisco, Portland and Denver, each of which posted double-digit growth over the past 12 months.”
Every metro area covered in the index experienced rising levels of home price appreciation, with Chicago recording the weakest growth at 1.35% annually, followed by Washington, D.C., at 1.7%.
On a monthly basis, Tampa, San Francisco, Seattle, Miami, Dallas and Atlanta posted the highest increases in home-price appreciation in October.
“The Federal Reserve’s decision to raise rates in December, and the expectation for a few more rate increases in 2016, may bring hesitant homebuyers out of the woodwork,” McCartin said. “An expected increase in mortgage rates, driven slightly higher in response to the federal funds rate, will drive homebuyers to lock in lower mortgage rates.”