Smaller cities see bigger gains even as U.S. home-price growth remains sluggish

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Smaller cities see bigger gains even as U.S. home-price growth remains sluggish
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Away from the coasts, home price growth has actually picked up in certain areas.

The numbers: The S&P CoreLogic Case-Shiller 20-city index rose by 0.4% in September compared with August, on a seasonally adjusted basis. The index was 2.1% higher than a year ago, continuing a slow rate of home-price growth.

What happened: Phoenix saw the biggest increase in home prices, according to S&P CoreLogic Case-Shiller Indices, with a 6% uptick from last year. Charlotte, N.C., was next with a 4.6% increase, followed by 4.5% growth in Tampa, Fla. While low mortgage rates have helped to an extent, affordability continues to be a significant headwind in the priciest markets, as droves of prospective buyers remain priced out of these local housing markets.

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