U.S. single-family home prices' rate of increase continued to decelerate in October since the stronger-than-expected rise seen in the previous month.
Data released from the S&P/Case-Shiller U.S. National Home Price Index indicated that both the 10-city and 20-city Composites had year-over-year declines in October.
The composite index of 10 metropolitan areas gained 4.4 percent year-over-year, slowing from the 4.7 percent rate recorded in September. The 20-city index saw a similar slowdown, rising 4.5 percent year-over-year in October, compared with the prior month's 4.8 percent growth.
Over the last 12 months, Miami and San Francisco saw prices rise 9.5 percent and 9.1 percent, respectively. Prices rose faster in October for eight cities including Tampa, Denver, and San Francisco. However, Las Vegas saw a decline of 1.2 percent, making it the leader of declining annual returns.
"After a long period when home prices rose, but at a slower pace with each passing month, we are seeing hints that prices could end 2014 on a strong note and accelerate into 2015," says David M. Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices.
"Two months ago, all 20 cities were experiencing weakening annual price increases. Last month, 18 experienced weakness. This time, 12 cities had weaker annual price growth, but eight saw the pace of price gains pick up. Seasonally adjusted, all 20 cities had higher prices than a month ago.