Home prices nationwide grew at their fastest rate of the year, as the number of homes for sale remained low.

The S&P CoreLogic Case-Shiller U.S. National Home Price Index showed prices were higher by 4.8% year-over-year in October, up from September’s annual price gain of 4%. While home prices continued their rise, it wasn’t quite as steep as the 5.1% increase that economists expected. It marks nine consecutive months of gains for the national index, the strongest national growth rate since 2022.

The 20-city composite index also showed weaker-than-expected price gains at 4.9%, just shy of the 5% that economists were looking for, and higher than September’s 3.9% annualized housing price increase. Each of the three housing indexes remained at all-time highs, with the 10-city index up 5.7%, compared with September’s 4.8%. Home prices in Miami, Atlanta, Chicago, Boston, Detroit, Charlotte, New York and Cleveland also registered all-time highs this month. 

While mortgage rates have cooled down to around 7%, they were at 23-year highs during October when the current index’s data was collected. The result of the surge in mortgage rates has been a “lock-in” effect: Homeowners are reluctant to list homes and give up their lower mortgage rate.

That's keeping home prices high due to the limited number of homes on the market. However, more recent data has shown that listings are on the rise as mortgage rates fall.

Biggest Price Jumps in Detroit, San Diego 

The home price report showed the Detroit housing market saw the largest price gains, up 8.1% year over year, while San Diego followed at 7.2%, as 11 of the 20 major metro markets reported month-over-month price increases. Only Portland, Ore. saw housing prices fall, lower on average by 0.6% over the same period last year.

“Home prices leaned into the highest mortgage rates recorded in this market cycle and continued to push higher. With mortgage rates easing and the Federal Reserve guiding toward a slightly more accommodative stance, homeowners may be poised to see more appreciation,” said Brian D. Luke, S&P Dow Jones Indices head of commodities, real and digital assets.