US home prices rose 13.3 percent year-over-year in September, the biggest gain since February 2006.
All 20 cities in the S&P/Case-Shiller index of property values demonstrated an increase in year-over-year prices, led by gains of 29.1 percent in Las Vegas, 25.7 percent in San Francisco and 21.8 percent in Los Angeles. San Francisco and Los Angeles experienced the highest annual returns since March 2001 and December 2005, respectively.
New York had the smallest increase, at 4.3 percent. All the 20 index cities have posted annual gains for the last nine months.
“The strong price gains in the West are sparking questions and concerns about the possibility of another bubble,” David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices, said in a statement. “However, the talk is focused on fear of a bubble, not a rush to join the party and buy. Moreover, other data suggest a market beginning to shift to slower growth, rather than one about to accelerate.”
Building permits increased 6.2 percent in October to a 1.03 million annualized rate, the most since June 2008, according to data released by the Commerce Department today. Figures for housing starts will not be published until December 18th, since last month’s government shutdown kept the agency from collecting the data in time.