August Home Price Growth Rate Sees 2-Year High
The top 20 cities in the US all experienced greater home price increases in August compared to July, according to the S&P CoreLogic Case-Shiller National Home Price Index. Home prices jumped 5.7% annually in August, compared to a 4.8% increase in July. The index’s 10-City Composite also saw a 4.7% jump, while the 20-City Composite jumped by 5.2% year over year. According to CNBC, a strong demand and short supply of homes continue to accelerate prices. There were three US cities that experienced much higher gains: Phoenix, Seattle, and San Diego.
“A trend of accelerating increases in the National Composite Index began in August 2019 but was interrupted in May and June, as Covid-related restrictions produced modestly decelerating price gains,” said Craig Lazzara, managing director and global head of Index Investment Strategy at S&P Dow Jones Indices.
“The last time that the National Composite matched August’s 5.7% growth rate was 25 months ago, in July 2018. If future reports continue in this vein, we may soon be able to conclude that the Covid-related deceleration is behind us.”