Home prices across the country rose again in August, according to data released Tuesday by S&P/Case-Shiller.
On a national basis, single-family home prices gained 4.7%, according to the S&P/Case-Shiller U.S. National Home Price Index, which covers all nine U.S. census divisions. This compares to a 4.6% increase in July.
An index measuring 20 cities shows that home prices rose an annual 5.1% in July. A separate index measuring 10 major cities shows that home prices gained an annual 4.7%.
The cities with the highest year-over-year gains were San Francisco (10.7%), Denver (10.7%), and Portland (9.4%).
“Home prices continue to climb at a 4% to 5% annual rate across the country,” says David Blitzer, chairman of the index committee at S&P Dow Jones Indices. “Most other recent housing indicators also show strength.”
Home prices have risen at a faster pace than inflation, and as Blitzer notes, a 5% rise in the value of a house means more today than back in 2005 or 2006 when the inflation rate was higher. Prices have also rebounded from their lows at a faster clip than they did after the 1997 to 2005 housing boom, and are doing so less because of inflation, says Blitzer.
“Annual U.S. home value appreciation has stabilized and settled into a nice groove over the past few months with steady appreciation. This relative stability should continue into the foreseeable future,” said Svenja Gudell, Zillow’s chief economist.
Seasonally adjusted, the national index rose 0.3% in July from the month before, while the 20-city index increased 0.4% and the 10-city index rose 0.3% month-over-month.