U.S. home prices hit eight-year high

NEW YORK ― Housing prices in the U.S. rose 5.2% year over year in October as demand outstripped supply, according to the latest Standard & Poor’s/Case-Shiller Home Price Index. This is the second increase after an annual rise of 4.9% in September. In the top 20 U.S. cities the trend was even stronger at 5.5%. Favourable economic conditions like low inflation and an increase in housing starts contributed to the effect, David M. Blitzer, chairman of the index committee, explained. A dearth of listed houses is the principal cause, however.