The Case-Shiller U.S. National Home Price Index, reported by S&P Dow Jones Indices, rose at a seasonally adjusted annual growth rate of 5.6% in October, faster than a 4.7% increase in September. It was the highest gain since February 2018. On a year-over-year basis, the Case-Shiller U.S. National Home Price NSA Index posted a 3.3% annual gain in October, up from 3.2% in September. Home prices are expected to continue rising in 2020 with affordable mortgage rates and tight inventory.
Meanwhile, the Home Price Index, released by the Federal Housing Finance Agency (FHFA), rose at a seasonally adjusted annual rate of 2.8% in October, following a 8.6% increase in September. On a year-over-year basis, the FHFA Home Price NSA Index rose by 5.0% in October, after an increase of 5.2% in September.
In addition to tracking home price changes nationwide, S&P also reported home price indexes across 20 metro areas. In October, local home prices varied and their annual growth rates ranged from -2.3% to 9.2%. Among the 20 metro areas, nine metro areas exceeded the national average of 5.6%. Atlanta, Los Angeles and Seattle had the highest home price appreciation in October. Both Atlanta and Los Angeles reported a 9.2% increase, followed by Seattle with an 8.2% increase. Home prices in two metro areas declined in October. They were San Francisco (-2.3%) and Detroit (-0.3%).
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