U.S. home prices increase in October; growth to slow down in 2014

Nathan Andrada – Fourth Estate Cooperative Contributor

New York, NY, United States (4E) – Home prices in the U.S. continued to rise in October, but at a slower pace from the previous month that may indicate that next year’s growth might not be as strong, according to a housing report released Tuesday in New York.

The property price index by S&P/Case-Shiller measuring 20 cities gained 13.6 percent from a year ago, the biggest 12-month increase since February 2006, after rising 13.3 percent in September year-over-year, the group’s report showed. The median forecast of 22 economists in a Bloomberg News survey called for a 13.5 percent gain.

Las Vegas led the rise in home values, rising 27.1 percent year-over-year, while prices in San Francisco jumped 24.6 percent. Despite the strong gains, the group is cautious about the future, saying that several forecasts predict home prices will grow in single-digit levels in 2014.

David Blitzer, chairman of the index committee at S&P Dow Jones Indices, said that the monthly numbers indicate that the property market is living on borrowed time and the boom is fading.

The estimates in the Bloomberg survey ranged from increases of 11 percent to 14 percent year-over-year. The S&P/Case-Shiller barometer is based on a three-month average, suggesting that the October figure was influenced by transactions made in September and August.

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