Beating analysts' forecasts, home prices across the U.S. rose 4.3 percent in the 12 months ended in October, according to data from S&P/Case-Shiller Home Price Indices.
The S&P's index of home prices in 20 major metro areas dipped 0.1 percent in October from September, but the research group said annual rates of change in home prices are a better indicator of the performance of the housing market since month-to-month prices tend to be lower in fall and winter than in spring and summer. In nineteen of the 20 cities studied, annual returns in October were higher than September, while Chicago and New York were the only two cities with negative annual returns 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," said David Blitzer, chairman of the Index Committee at S&P Dow Jones Indices. "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."
