S&P/Case Shiller house price index accelerated further in October

The S&P/Case-Shiller 20-City Home Price Index increased more than expected in October, showing some modest acceleration in the pace of house price gains. Home prices rose 0.84% m/m, and the y/y rate increased to 5.54% (previous 5.36%). The house price appreciation was broad-based, with sizable gains in all 20 major metropolitan statistical areas (MSAs). 

Prices in San Francisco and Seattle topped the list with each experiencing gains of 1.3% m/m, bringing the three-month annualized change in those cities to 13.3% and 12.3%, respectively. House price appreciation had moved sideways through late 2014 and early 2015 before accelerating near the end of Q3. All three of the major house price indexes show similar rates of house price appreciation and growth rates have accelerated in all three since mid-2014. 

"We expect solid employment growth, modest wage increases, and the low level of housing supply to continue to support the house prices in 2016", says Barclays.