Home-price growth accelerated in September, marking two-straight months of price increases after a long period of decelerating gains.
The S&P CoreLogic Case-Shiller U.S. National Home Price Index, which measures average home prices in major metropolitan areas across the nation, rose 3.2% annually, up from 3.1% the previous month.
The results, which coincide with an increase in sales of existing homes, indicated that low mortgage interest rates continue to make an impact on the market.
“September’s report for the U.S. housing market is reassuring,” said Craig J. Lazzara, a managing director at S&P Dow Jones Indices. “It is, of course, too soon to say whether this month marks an end to the deceleration or is merely a pause in the longer-term trend.”
Price growth was greatest in Sunbelt cities, according to the report, such as Phoenix, where prices grew 6% from September of 2018. Prices declined in just one of the 20-city composite index tracked by S&P, San Francisco.
Another report released by the Federal Housing Finance Agency on Tuesday also showed prices increased nationally in September. Last week, the National Association of Realtors said sales of existing homes rose 1.9% in October.
While home prices grew 3.2% nationally in September, they rose more modestly—2.1%—in large metro areas tracked in the 20-city composite index.