U.S. home prices rose more than expected through the first 10 months of this year in the latest indication that the recovery in the nation's housing market is gaining steam.
The S&P/Case Shiller Home Price Index, which measures house prices in 20 cities, showed such prices rose 4.3 percent in the 12 months ending in October.
“Looking over this report, and considering other data on housing starts and sales, it is clear that the housing recovery is gathering strength. Higher year-over-year price gains plus strong performances in the Southwest and California, regions that suffered during the housing bust, confirm that housing is now contributing to the economy," David M. Blitzer, chairman of the Index Committee at S&P Dow Jones Indices, said in a statement. "Last week’s final revision to third-quarter GDP growth showed that housing represented 10 percent of the growth while accounting for less than 3 percent of GDP.
“One indication of the rebound is the gains from the bottom. The largest rebound is 24.2 percent in Detroit even though prices there are still about 20 percent lower than 12 years ago. San Francisco and Phoenix have also rebounded from recent lows, by 22.5 percent and 22.1 percent, with prices comfortably higher than 12 years ago. The smallest recoveries are seen in Boston and New York, two cities in the Northeast which suffered smaller losses in the housing bust than the Sunbelt or California.”