The S&P/Case-Shiller home price index increased 5.5% in September, exceeding expectations for a 5.2% rise, after a 5.1% gain in August.
San Francisco, Denver and Portland were the largest contributors to the rise, where prices climbed by 11.2%, 10.9% and 10.1%, respectively.
"Home prices and housing continue to show strength with home prices rising at more than double the rate of inflation. The general economy appeared to slow slightly earlier in the fall, but is now showing renewed strength," chairman of the index committee at S&P Dow Jones Indices David Blitzer said.
On a monthly basis, the S&P/Case-Shiller home price index rose by a seasonally adjusted 0.6% rate in September.
The S&P/Case-Shiller home price index measures single-family home prices in 20 U.S. cities.