U.S. home price index rises sequentially in September

U.S. home price index rose sequentially in the month of September and above consensus expectations. The S&P CoreLogic Case-Shiller 20-city Home Price Index was up 0.52 percent sequentially, as compared with the consensus expectations of a rise of 0.3 percent. The annual pace of price appreciation moved higher to 6.2 percent and three-month annualized growth rebounded to 5.5 percent from 3.8 percent. The tight inventory situation, particularly among existing units, is putting upwards pressure on the home prices, according to a Barclays research report.

All the 20 cities covered in the report recorded positive monthly home price growth, which hints at a widespread improvement in momentum. Overall, the annual rate of home price appreciation has remained stable in the range of 5 percent to 6 percent that has been seen in the past year and is consistent with the view of a modest and stable rebound in the housing sector in 2017, stated Barclays.

Meanwhile, the FHFA purchase-only House Price Index rose a more modest 0.3 percent sequentially, whereas it dropped to 6.3 percent year-on-year from 6.7 percent. The FHFA survey had been on the higher end of the range of home price appreciation reported by other measures and the latest print brings it more in line with the S&P/CoreLogic/Case Shiller survey. Region wise eight out of nine areas saw a rise in home prices, implying a widespread pick-up. Only the East South Central region recorded a drop in home prices, by 0.4 percent sequentially. Overall, home price appreciation continues to keep a stable rate.

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