US Home Prices Show Slightly Faster Annual Growth In August

Home prices continued to rise in August on pace with gains throughout 2015 as housing market indicators remained mostly positive, according to the S&P/Case-Shiller 20-City Composite index.

But the arc of the increases is flattening: metro Atlanta’s prices in August were up just 0.2 percent from the prior month when they rose 0.8 percent, according to Case-Shiller.

The Standard & Poor’s/Case-Shiller 20-city home price index rose 5.1 per cent in the 12 months ending in August, up from a 4.9 per cent pace in July.

The largest annual increases were in San Francisco, 10.7 percent, Denver, 10.7 percent and Portland, 9.4%. Eighteen of 20 cities said prices increased.

The top 20 metros saw an increase of 0.4 percent during August. The 10-City Composite and 20-City Composite both reported gains of 0.3% and 0.4% month-over-month respectively.

After seasonal adjustment the national index was up 0.4%.

Analysis “Home prices continue to climb at a 4% to 5% annual rate across the country”, says David M. Blitzer, Managing Director and Chairman of the Index Committee for S&P Dow Jones Indices. Most other recent housing indicators also show strength. Interestingly, a good portion of the overall home price growth we’re seeing, especially in cities, has been driven by strong growth in condominium values, which are now appreciating more quickly than single-family homes. Sales of previously owned homes increased sharply in September, climbing 4.7% to a seasonally adjusted annual rate of 5.55 million, the National Association of Realtors said last week.

The report said new home sales tumbled 11.5% to an annual rate of 468,000 in September from the revised August rate of 529,000.

“A notable part of today’s economy is the continuing low inflation rate; in the year to September, consumer prices were unchanged”.