US home prices surged 6.6% in September

Prices increased 6.6 percent year-over-year in September (iStock)

Prices increased 6.6 percent year-over-year in September (iStock)

Housing prices continue to soar into the fall.

Prices increased 6.6 percent year-over-year in September, according to the S&P CoreLogic Case-Shiller home price index, which tracks the housing market in 20 cities including New York City, Los Angeles, Miami and Chicago. In August, the price index jumped 5.2 percent.

Phoenix, Seattle and San Diego saw the biggest gains in home prices, repeating their performance from August. Phoenix reported a 11.4 percent increase, Seattle a 10 percent gain and San Diego had a 9.5 percent bump.

The S&P CoreLogic Case-Shiller national home price index, which tracks prices across the entire country, increased by 7 percent, up from 5.8 percent in August. Its monthly indices have been tracking the U.S. housing market for 27 years.

The rise in prices nationwide comes as demand for homes is high — in October, 6.85 million existing homes sold — and supply is at historic lows, with just 1.42 million properties for sale.

Housing starts rose 5 percent the same month, though Lawrence Yun, the National Association of Realtors’ chief economist, noted that new home construction was yet to alleviate the housing market’s low supply.

As prices soar and tighter lending criteria blocks some would-be homebuyers from being able to finance their purchases, the housing market recovery has been classified as K-shaped, with high earners recovering more quickly than those with lower incomes. Economists warn that the housing market’s uneven recovery could have dire consequences for the broader economy and growing inequality in society.

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