The various measures of house prices appear to be sending different messages, but on balance it looks like price gains have picked up again following outright falls earlier in the year. The Case-Shiller 20-City measure declined again in August, but the national measure rose. The Fed puts most stock by the CoreLogic index, and it increased by 0.6% m/m in September and is now pointing to a clear acceleration in house prices. This pick-up is being driven by stronger home sales and a contraction in the inventory of homes for sale. Nevertheless, with housing no longer obviously undervalued, the scope for strong and sustainable price gains is limited.
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