Photo: Roy Googin/Wikimedia Commons
US home prices rose year-over-year by 12.8 percent in August, the biggest annual gain since February 2006.
The S&P/Case-Shiller index of property prices in 20 cities increased by 0.93 percent month-over-month in August beating expectations for a 0.65 percent uptick. July’s data was adjusted to show a 0.6 percent increase.
All 20 cities posted positive annual returns, and 13 cities demonstrated double-digit annual gains. Las Vegas had the biggest annual leap in August, with a 29.2 percent increase, followed by San Francisco with 25.4 percent and Los Angeles with 21.7 percent. Detroit remains the only city below its January 2000 index level.
“The monthly percentage changes for the 20-city composite show the peak rate of gain in home prices was last April,” David Blitzer, chairman of the S&P index committee, said in a statement. “Since then home prices continued to rise, but at a slower pace each month. Recent increases in mortgage rates and fewer mortgage applications are two factors in these shifts.”
Robert Shiller, who created the index with Karl Case, was one of three economists awarded the 2013 Nobel Prize in Economic Sciences this month.