US Home Prices Rise 5.1% in October, Data Shows

Washington, US home prices rose again in October as buyers bidding for scarce properties drove prices higher.

The Standard & Poor’s CoreLogic Case-Shiller 20-city home price index, released Tuesday, rose 5.1% in October from a year earlier after climbing 5% in September. Prices for the 20 cities are still 7.1% below their July 2006 peak.

The broader Case-Shiller national home price index was up 5.6% in October and has fully recovered from the financial crisis. Prices rose 10.7% annually in Seattle, 10.3% in Portland and 8.3% in Denver. AP reported that New York registered the smallest year-over-year gain: 1.7%. Home sales and prices have been helped by healthy demand, tight supplies and low mortgage rates.

The National Association of Realtors said last week that fewer than 1.9 million homes were on the market in November, down 9% from a year earlier. The tight supply pushed the median price of existing homes to $234,900 last month, up 6.8% from a year ago.

But the cheap loans may be vanishing. The rate on the benchmark 30-year, fixed-rate mortgage last week reached 4.30%, the highest since April 2014.

Source: Qatar News Agency