House Prices Slightly Stronger Than Expected: Case-Shiller

According to the new Case-Shiller survey, house prices were slightly stronger than expected in September. Following a upwardly revised 0.2 percent monthly increase in August, the seasonally adjusted 20-city index rose a further 0.4 percent. This was enough to nudge the unadjusted annual inflation rate a tick higher to 2.1 percent. On the month, unadjusted prices were 0.1 percent firmer.

The relative buoyancy of the September Case-Shiller data is broadly consistent with the solid performance shown in the FHFA report just released. Although the monthly statistics can be very volatile, there is gradually building evidence that housing market activity is beginning to acquire some fresh momentum.