US: Expect 6.30% y-o-y increase in Case-Shiller home price index - Nomura

Analysts at Nomura point out that US home prices increased at a 12-month rate of 6.4% in October, the highest reading since July 2014.

Key Quotes

“Employment and income growth will likely continue to be favorable for healthy housing demand, pushing home prices higher as supply levels for previously-owned homes remain lean. For November, consensus expects a 6.30% y-o-y increase.”

“West Coast cities continue to see rapid home value appreciation: on a 12-month basis, the four cities with the highest home price growth in October were Seattle, Las Vegas, San Diego and San Francisco. The recently passed tax law could put downward price pressure on high-end real estate markets in localities with higher state & local taxes. However, this change is likely to be gradual.”