U.S. home prices rose in October at a slightly slower pace, as real estate sales have fallen and affordability has increasingly become a challenge for potential buyers.
Case-Shiller Home Prices Index
Community Year-over-year pricing in October
San Francisco +9.1%
Las Vegas +8%
Portland, Oregon +6.2%
Los Angeles +4.9%
San Diego +4.7%
Charlotte, N.C. +2.8%
Washington, D.C. +2.2%
New York +2%
Source: Standard & Poor’s
The Standard & Poor’s/Case-Shiller 20-city home price index increased 4.5 percent in October from 12 months prior. The figures reported Tuesday mark the eleventh straight month of price gains decelerating. It also was the smallest gain since October 2012.
The slowdown comes after surging double-digit increases for much of 2013.
Home values climbed as the market recovered from bottoming out in 2011 in the aftermath of the housing bust and the Great Recession.
But home prices have outpaced lackluster wage growth, leaving many potential buyers unable to afford homes and causing both sales and price growth to stall this year.
The recent decline in mortgage rates has yet to bring more buyers into the market.