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U.S. home price growth slowed further in October

December 30, 2014, 2:13 PM UTC
New Home Sales Plunge 11.8%
MIAMI, FL - MAY 27: A "For Sale" sign sits in front of a new home May 27, 2004 in Miami, Florida. According to the Commerce Department new home sales in the United States suffered their largest monthly drop in 10 years in April as rising mortgage rates cooled the housing market from the previous month. New home sales fell 11.8 percent to a seasonally adjusted annual rate of 1.093 million units from an upwardly revised record high of 1.239 million in March. (Photo by Joe Raedle/Getty Images)
Photograph by Joe Raedle—Getty Images

U.S. single-family home price appreciation slowed less than forecast in October, as there were hints of some re-acceleration in home prices in some cities by year-end, according to a closely watched survey released on Tuesday.

The S&P/Case Shiller composite index of 20 metropolitan areas gained 4.5 percent in October from the prior year, compared with a revised 4.8 percent increase in September. A Reuters poll of economists forecast a 4.4 percent increase.

On a seasonally adjusted monthly basis, prices in the 20 cities rose 0.8 percent for the month. A Reuters poll of economists had forecast an increase of 0.4 percent.

However, non-seasonally adjusted prices fell 0.1 percent in the 20 cities on a monthly basis, Analysts had expected them to be unchanged.

“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,” David Blitzer, chairman of the index committee at S&P Dow Jones Indices, said in a statement.

A broader measure of national housing market activity rose at a 4.6 percent clip on a year-over-year basis, compared with a 4.8 percent rate in September.

The seasonally adjusted 10-city gauge rose 0.7 percent in October versus a revised 0.2 percent gain in September, while the non-adjusted 10-city index dipped 0.1 percent for a second straight month in October.