Home prices rose in August, according to the recently released S&P/Case-Shiller Home Price Indices. Data through August 2015 revealed a slightly higher year-over-year gain with a 4.7 percent annual increase in August 2015 versus a 4.6 percent increase in July 2015. The 10-City Composite increased 4.7 percent in the year to August compared to 4.5 percent in the prior month. The 20-City Composite’s year-over-year gain was 5.1 percent versus 4.9 percent in the year to July. San Francisco, Denver and Portland reported the highest year-over-year gains among the 20 cities with price increases of 10.7 percent, 10.7 percent, and 9.4 percent, respectively.
“The small pool of available homes on the market has continued to push prices higher,” says Quicken Loans vice president Bill Banfield.”Those who are waiting to list may be influenced by this sustained home price growth, giving a boost to home inventory. An increase in inventory could be exactly what is needed for first time home buyers to find the home they’re waiting for.”
Before seasonal adjustment, the National Index posted a gain of 0.3 percent month-over-month in August. The 10-City Composite and 20-City Composite both reported gains of 0.3 percent and 0.4 percent month-over-month respectively. After seasonal adjustment, the National Index posted a gain of 0.4 percent, while the 10-City and 20-City Composites both increased 0.1 percent month-over-month. Eighteen of 20 cities reported increases in August before seasonal adjustment; after seasonal adjustment, five were down, 11 were up, and four were unchanged.
As of August 2015, average home prices for the MSAs within the 10-City and 20-City Composites are back to their winter 2007 levels. Measured from their June/July 2006 peaks, the peak-to-current decline for both Composites is approximately 11-13 percent. Since the March 2012 lows, the 10-City and 20-City Composites have recovered 34.8 percent and 36.1 percent.
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