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Home prices rise sharply in October on low inventories, strong demand

Home prices rose a full percentage point in October and are up 6.8 percent compared to the October 2014 level, CoreLogic reported on Tuesday.

“Many markets have experienced a low inventory of homes for sale along with strong buyer demand, which is sustaining upward pressure on home prices,” said Frank Nothaft, CoreLogic’s chief economist in a news release.

Nothaft said demand and low inventories should continue to keep prices elevated into next year, but eventually the pace should slow to year-over-year appreciation of 5.2 percent. The projected gain from October to November is expected to be just 10 basis points, the company said. 


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