Home Prices Grew 5.1 Percent in August

The 20-City Case-Shiller Composite gained 5.1 percent year-over-year in August, up from July’s gain of 4.9 percent. The 10-City Composite gained 4.7 percent from the previous year, up from a 4.5 percent annual increase last month. The National Index posted a 4.7 percent annual increase, compared to a 4.6 percent increase in July.

Fifteen cities in the 20-City Index reported greater annual price increases in August than in the previous month. San Francisco, Denver and Portland reported the highest gains with year-over-year increases of 10.7 percent, 10.7 percent, and 9.4 percent.

On a monthly basis, both the National Index and 10-City Composite reported gains of 0.3 percent, while the 20-City Composite posted a month-over-month gain of 0.4 percent.

“Most other recent housing indicators also show strength,” says David M Blitzer of S&P Dow Jones Indices. Housing starts topped an annual rate of 1.2 million units in the latest report with continuing strength in both single family homes and apartments. The National Association of Home Builders sentiment survey, reflecting current strength, reached the highest level since 2005, before the housing collapse. Sales of existing homes are running about 5.5 million units annually. However, the September new home sales took an unexpected and sharp drop as low inventories were cited as a possible cause.”

Read the S&P release.