U.S. home prices surge to 6-year high in September, Case-Shiller index shows

Home prices are still rising during the pandemic owing to historically low interest rates and more people leaving big cities.


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The numbers: The cost of buying a house rose sharply again in September and by one measure hit a six-year high, a Case-Shiller index showed, signaling that prospective buyers are unlikely to find better deals any time soon.

A measure of home prices in 20 large cities rose at a 6.6% yearly pace in October, according to the S&P CoreLogic Case-Shiller price index. That’s up from 5.3% in the prior month.

Wall Street economists had forecast a 5.4% increase.

A broader measure by Case-Shiller that covers the entire country showed a similarly large 7% increase in home prices over the past year, marking the fastest 12-month gain since 2014.

Home prices have actually risen faster during the worst pandemic in a century instead of getting cheaper.

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Home Price Growth Reaches 6-Year High in September

Despite a slow summer and fears of a pandemic-fueled dip, home prices rose to a six-year high in early fall.

According to the latest data from property analytics provider CoreLogic, home prices rose by 6.7 percent in September. Such numbers are a 1.1 percent jump from August and an annual increase unseen since May 2014.

The reasons for such a jump, even if all the economic disruption caused by the pandemic initially indicated a slowdown, has several interconnected reasons: record-low mortgage rates, pent-up demand and a lack of new inventory on the market.

CoreLogic

According to a joint study by the National Association of Realtors and U.S. Census Bureau, the number of homes currently on the market is the lowest in years — 40 percent of what was seen in September 2008 and 75 percent of what was seen in September 2000.

“Housing continues to be a bright spot during

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