U.S. Home-Price Growth Accelerated in October

Sales of previously owned homes, which make up the bulk of the housing market, rose in October 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 Case-Shiller 10-city index gained 7.5% over the year ended in October, compared with a 6.2% increase in September. The 20-city index rose 7.9%, after an annual gain of 6.6% in September.

“The data from the last several months are consistent with the view that Covid has encouraged potential buyers to move from urban apartments to suburban homes,” said Craig Lazzara, managing director and global head of index investment strategy at S&P Dow Jones Indices, in a statement.

Economists surveyed by The Wall Street Journal expected the 20-city index to gain 6.9%.

The 20-city index measured 19 cities in October 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 17th straight month, at 12.7%, followed by Seattle at 11.7%.

A separate measure of home-price growth by the Federal Housing Finance Agency released last week found a 10.2% increase in home prices in October from a year earlier.

Write to Nicole Friedman at [email protected]