The growth in U.S. home prices cooled for a third straight month in October.
A measure of home prices in 20 U.S. cities jumped 18.4%, down from 19.1% in September, the S&P CoreLogic Case-Shiller index showed Tuesday.
Prices jumped 32% in Phoenix, according to the index. Tampa, Florida, and Miami followed with gains of 28% and 26%, respectively.
Home prices have soared in the pandemic, which set off fierce competition for a tight supply of listings across the U.S. The 20-city index hit a record in July, after 13 straight gains.
And while interest rates are likely to increase, plenty of factors should contribute to continued, albeit slower, price growth, Zillow Senior Economist Kwame Donaldson said in an emailed statement to National Mortgage News.
"The U.S. labor market touts low unemployment and robust wage growth, a tsunami of millennials are reaching the peak age for first time homebuyers, and the for-sale inventory unexpectedly tightened in October and November," he wrote. "House price appreciation will continue to slow from this summer’s unsustainable levels, but these conditions ensure that growth will comfortably exceed normal rates over the next year."
