S&P reported on Tuesday its Case-Shiller Home Price Index, which tracks home prices in 20 U.S. metropolitan areas, rose 7.9 percent y-o-y in October, following an unrevised 6.6 percent y-o-y jump in September. This was the biggest annual gain in house prices since June 2014.

Economists had expected a climb of 6.9 percent y-o-y.

Phoenix (+12.7 percent y-o-y), Seattle (+11.7 percent y-o-y) and San Diego (+11.6 percent y-o-y) recorded the highest y-o-y advances among the 19 cities (excluding Detroit) in October. All 19 cities reported greater price gains in the year ending October versus the year ending September.

Meanwhile, the S&P/Case-Shiller U.S. National Home Price Index, which measures all nine U.S. census divisions, surged 8.4 percent y-o-y in October, following a 7.0 percent y-o-y increase in the previous month. This was the largest annual advance since March 2014.

“The surprising strength we noted in last month’s report continued into October’s home price data,” noted Craig J. Lazzara, Managing Director and Global Head of Index Investment Strategy at S&P Dow Jones Indices. “Although the full history of the pandemic’s impact on housing prices is yet to be written, the data from the last several months are consistent with the view that COVID has encouraged potential buyers to move from urban apartments to suburban homes. We’ll continue to monitor what the data can tell us about this question.”