Home prices rose 0.76% in October according to the latest S&P/Case-Shiller home price index, topping expectations.
Wall Street expected the index would show home prices rose 0.4% month-on-month.
But Yale professor Robert Shiller — the Shiller half of the Case-Shiller name — said that some of the increases seen in markets around the country are worrying.
In comments on CNBC following the report, Yale professor Robert Shiller said that, “it’s getting a little bit bubbly” in San Francisco.
Among individual markets, Miami and San Francisco saw home prices rise 9.5% and 9.1% year-on-year, respectively, the largest increases among the report’s 20 markets.
Month-on-month, home prices in San Francisco and Tampa saw prices rise 0.8%, the fastest increase.
Shiller added that low rates have been driving home prices higher, and said that he feels a little bit of anxiety about the housing market because the recent increase in home prices feels, to Shiller, a bit fragile. Shiller said that expectations are positive for home prices over the last ten years, but said expectations for the housing market are often “very wrong.”
Compared to last year, home prices rose 4.5% in October against expectations for a 4.4% year-on-year increase.
In September, home prices rose month-on-month for the first time since April, with home prices gaining 0.34%.
S&P Dow Jones Indices managing director David Blitzer said, “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.”
Here’s the chart from Case-Shiller showing the slowdown in year-on-year price increases for the 10- and 20-city composite indexes.