U.S. home prices rose in September from a year earlier at the fastest pace in 13 months as a lack of houses for sale has forced buyers to bid up available properties.
The Standard & Poor’s/Case-Shiller 20-city home price index increased 5.5 percent in September compared with a year ago, the largest annual gain since August 2014.
Steady job gains and low mortgage rates have propelled a solid rebound in home sales, which are on track to reach the highest level since 2007. The unemployment rate fell to 5 percent in October as employers added the most jobs since December. Borrowing costs have ticked up but remain below 4 percent, a low level historically.
San Francisco reported the largest annual gain, at 11.2 percent, followed by Denver at 10.9 percent.