U.S. single family home prices rose by 5.5 percent in October, according to the S&P/Case Shiller composite index. This was slightly above estimates. Shartia Brantley reports.
U.S. single family home prices continue to rise. The S&P/Case Shiller composite index, which monitors 20 metropolitan areas, gained 5.5 percent in October on a year-over-year basis. This is up slighlty from 5.4 percent in September. And just above the 5.4 percent estimate from economists polled by Reuters. San Francisco, Denver and Portland reported the highest year-over-year gains with 10.9 percent each. David Blitzer, Managing Director at S&P Dow Jones Indices said: "Among the positive factors are consumers' expectations of low inflation and further economic growth as well as recent increases in residential construction including single family housing starts. Inventories of existing homes have averaged around a five month supply for the past year, a level that suggests a fairly tight market with limited supplies." Phoenix had the longest streak of year-over-year increases, with a gain of 5.7% in October. This marked eleven consecutive increases in annual price gains.