National Home Prices Extend Gains in August

Wells Fargo Research Team Wells Fargo

The S&P CoreLogic Case-Shiller U.S. National Home Price Index rose 0.6 percent in August, pushing the yearover- year rate to 5.3 percent. The 10-City and 20-City Composite indices also edged higher on the month.

U.S. Home Prices Edge Higher

U.S. home prices rose 0.6 percent in August, as prices continue to be supported by low inventories of for-sale homes and moderate economic growth. The National Home Price Index stood just 0.1 percent below its pre-recession peak in August and is likely to surpass its 2006 level in the coming months.
In a separate release, the FHFA Home Price Index also popped up sharply in August, rising 0.7 percent.

Regional Divergence in Home Prices

On a regional basis, 14 of the 20 cities saw home prices rise in August, with the 20-City Index increasing 0.2 percent as a whole. The drivers of home price appreciation have shifted over the past year, as some cooling is evident in the year-over-year trend in major markets, including San Francisco and Los Angeles, while home price growth in other pockets around the U.S., such as Denver and Portland, are trending near post-recession highs.

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Wells Fargo Research Team

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