U.S. House Prices Rose 5.6% in October From Prior Year

U.S. house prices rose 5.6 percent in the 12 months through October as the housing market recovers, the Federal Housing Finance Agency said.

Prices climbed 0.5 percent from September, the FHFA said today in a report from Washington. That was more than the 0.3 percent average estimate of 16 economists in a Bloomberg survey.

U.S. home values have increased this year as record-low borrowing costs and improving employment bolster consumer demand and the supply of homes on the market shrinks.

The FHFA data, which is based on sales of single-family houses with a mortgage backed by Fannie Mae or Freddie Mac, doesn’t provide a specific price. The median price of an existing single-family home was $178,600 in October, up 11 percent from a year earlier and 0.2 percent higher than September, the National Association of Realtors said on Nov. 20.

U.S. home values gained 6 percent this year to an estimated $23.7 trillion, according to an analysis released today by Seattle-based Zillow Inc.

To contact the reporter on this story: John Gittelsohn in Los Angeles at johngitt@bloomberg.net

To contact the editor responsible for this story: Kara Wetzel at kwetzel@bloomberg.net

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