Home prices were up nearly 13% nationwide as of August, with some metro areas reaching new heights and the national average annual gain at its highest level since 2006.
Tracked by Standard & Poors / Dow Jones Indices, home prices across the 20 major metros the index tracks saw increases as of August. Some cities, including Denver and Phoenix, have been seeing gains for 20 consecutive months, with others, such as Las Vegas and California, posting year-over-year increases of more than 20%.
“The 10-city and 20-city composites posted a 12.8% annual growth rate,” said David M. Blitzer, chairman of the Index Committee at S&P/Dow Jones. “Both composites showed their highest annual increases since February 2006. All 20 cities reported positive year-over-year returns. Thirteen cities posted double-digit annual gains. Las Vegas and California continue to impress with year-over-year increases over 20%. Denver and Phoenix posted 20 consecutive annual increases; Miami and Minneapolis 19. Despite showing 26 consecutive annual gains, Detroit remains the only city below its January 2000 index level.”
On a monthly basis, the index gained 1.3% in August with Las Vegas leading at an increase of 2.9% during the month.
“The monthly percentage changes for the 20-City composite show the peak rate of gain in home prices was last April,” Blitzer said. “Since then home prices continued to rise, but at a slower pace each month. This month 16 cities reported smaller gains in August compared to July. Recent increases in mortgage rates and fewer mortgage applications are two factors in these shifts.”