Housing

US home prices up 18.4 percent in October

Home prices in the U.S. rose by 18.4 percent in October, according to the data from the S&P Dow Jones CoreLogic Case-Shiller 20-City Composite Home Price NSA Index released on Tuesday.

This growth in home prices marked a slight drop from the 19.1 percent increase that was reported in September.

According to the S&P Dow Jones, Phoenix, Tampa and Miami saw the highest year-over-year increase in October among the 20 cities included in the index, with all three cities seeing growth of more than 25 percent.

According to the report, six out of the 20 cities reported higher price increases in October than in September. Chicago, Washington, D.C, and Minneapolis saw the lowest year-over-year change of the cities on the list, with increases of just 11 to 12 percent.

The housing market has remained strong, The Associated Press noted, due to low mortgage rates, heightened demand and a low supply of homes.

Chief economist for Realtor.com Danielle Hale told the AP that growth in housing prices will likely slow down in the next year, though prices would still continue to rise.

“As housing costs eat up a larger share of home purchaser’s paychecks, buyers will get creative. Many will take advantage of ongoing workplace flexibility to move to the suburbs where despite home price gains, many can still find a lower price per square foot than nearby cities,” Hale said.