The S&P/Case-Shiller 20-City Home Price Index jumped 0.61% in September, putting the year-over-year price gain at 5.5%. That compares with a 4.9 percent gain nationally.
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South Florida home prices continued their steady rise in September, according to the housing market’s most closely watched economic indicator, which was released Tuesday. The 20-city index gained 5.5% year-over-year compared with 5.1% a month earlier.
“Home prices and housing continue to show strength with home prices rising at more than double the rate of inflation”, said David Blitzer, managing director at S&P Dow Jones Indices. “The price data is stronger than expectations as the consensus call was for a 0.30% increase month/month and a 5.15% YoY rise”. Joblessness at its lowest level since 2008 and the prospects for a bigger pickup in wage gains should buoy residential real estate even as borrowing costs are poised to pick up as the Federal Reserve considers raising its benchmark interest rate. Annual price gains accelerated in August and September, breaking out of a four-month holding pattern.
However, after adjusting for the CPI core rate of inflation, the index rose 3% from September 2014 to September 2015. After seasonal adjustment, the National Index posted a gain of 0.8%, while the 10-City and 20-City Composites both increased 0.6% month-over-month.
Dallas-area home prices are up more than 35 precent since 2012.
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Sales of existing homes fell in October after a September surge, as rising home prices and a lack of inventory challenged potential buyers, according to the National Association of Realtors.
