S&P reported on Tuesday its Case-Shiller Home Price Index, which tracks home prices in 20 U.S. metropolitan areas, rose 6.6 percent y-o-y in September, following a revised 5.3 percent y-o-y jump in August. (originally a 5.2 percent y-o-y surge). This was the biggest annual gain in house prices since April 2018.

Economists had expected a climb of 5.1 percent y-o-y.

Phoenix (+11.4 percent y-o-y), Seattle (+10.1 percent y-o-y) and San Diego (+9.5 percent y-o-y) recorded the highest y-o-y advances among the 19 cities (excluding Detroit) in September. All 19 cities reported greater price gains in the year ending September versus the year ending August.

Meanwhile, the S&P/Case-Shiller U.S. National Home Price Index, which measures all nine U.S. census divisions, jumped 7.0 percent y-o-y in September, following a 5.8 percent y-o-y increase in the previous month. This was the largest annual advance since September 2014.

“Housing prices were notably - I am tempted to say ‘very’ - strong in September,” noted Craig J. Lazzara, Managing Director and Global Head of Index Investment Strategy at S&P Dow Jones Indices. “This month’s increase may reflect a catch-up of COVID-depressed demand from earlier this year; it might also presage future strength, as COVID encourages potential buyers to move from urban apartments to suburban homes. The next several months’ reports should help to shed light on this question.”