Prices of homes in 20 U.S. cities rose higher than the initial projection from September 2014 to September 2015.
According to Bloomberg, the residential real estate shows indication of maintaining momentum. In the middle of fixed demand, there will be a home price increase due to inadequate quantity of homes in the market.
In 2008, the unemployment rate sharply increased. Salary advantage was expected to sustain the residential real estate, and even the borrowing charges are controlled to give a lift as the Federal Reserve studies increasing standard interest rates.
The 5.5 percent growth in the S&P/Case-Shiller index of property values marked the highest year-on-year gain since August last year, the group told Bloomberg on Tuesday, Nov. 24. It followed the 5.1 percent increase in the previous month. The economists who participated in the Bloomberg survey gave a median estimate of 5.2 percent growth. Home prices increased by 4.9 percent nationwide.
"You still have constrained inventory and you don't really have a whole lot coming on board unless construction picks up markedly," Gennadiy Goldberg, a US rates strategist for New York-based firm TD Securities LLC, said in an earlier interview. He added that housing has a very slow, very gradual improvement which is good for now.
The estimates of the economists in the survey ranged from 4.9 percent to 5.7 percent increase. The S&P/Case-Shiller index is based on median results for three months, and this means the transactions made in July and August influenced the September figure.
When it comes to monthly gain, there was a slight increase of 0.6 percent from August to September for home prices in the 20-city index adjusted for seasonal changes. It is twice the 0.3 percent median estimate in the Bloomberg survey and the highest growth since March.
All of the 20 cities included in the index saw a year-over-year gain, with the highest gains belonging to San Francisco (11.2 percent) and Denver (10.9 percent). On the other hand, there was a 1.1 percent home rate increase in Chicago, registering the least 12-month gain among the cities.
