There’s Plenty of Momentum for Home Prices Heading Into 2016

Home prices are on the rise and the outlook is strong for 2016. Fresh data released Tuesday showed a 5.2 percent rise in the S&P/Case-Shiller U.S. National Home Price Index for October, compared to 4.9 percent in September. The 20-city index, which tracks home prices in metropolitan cities across the country, rose 5.5 percent over the past year. ‘The numbers are very strong,’ said David Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices. ‘Month-to-month, all 20 cities were positive and nine of the 20 cities were up 1 percent or more and that shows we are seeing a lot of strength in home prices.’ He also said a stronger economy and lower unemployment, along with low inflation is boosting the housing market. Pressures on the supply side are also lifting home prices. ‘Inventories remain pretty tight,’ he added. ‘We’re looking at about a 5-month supply of existing homes on the market and it’s been right around that number for all of 2015.’ TheStreet’s Scott Gamm has details from New York.