Home prices in 20 U.S. cities rose by the most since February 2006 in the 12 months through September, showing the housing market sustained progress even as borrowing costs climbed.
The S&P/Case-Shiller index of property values advanced 13.3 percent after increasing 12.8 percent a month earlier, the group said today in New York. The median forecast in a Bloomberg survey of 31 economists called for a 13 percent advance.
Sellers are standing firm on asking prices as buyers compete for a limited number of available properties. Higher home values are helping propel gains in Americans’ net worth, boosting confidence among homeowners and creating momentum for consumer spending.
“Housing demand has clearly improved this year,” said Ryan Wang, an economist at HSBC Securities USA Inc. in New York who projected a 13.2 percent year-over-year increase. “The housing market has benefited from fewer foreclosures over the last year, the share of distressed housing transactions is back to pre-crisis levels, and that has helped to boost home prices in many parts of the country.”
Bloomberg survey estimates ranged from increases of 12.4 percent to 13.5 percent. The S&P/Case-Shiller index is based on a three-month average, which means the September data were influenced by transactions in July and August.
All of the 20 cities in the index showed an increase in year-over-year prices, led by gains of 29.1 percent in Las Vegas and 25.7 percent in San Francisco. The smallest gain was in New York, which showed a 4.3 percent advance.