United States: Growth in home prices slows again in August
October 29, 2013
In August, the unadjusted S&P/Case-Shiller 20-city home price composite index rose 1.3% over the previous month, which beat market expectations of a 0.8% rise. The reading came in below the 1.8% increase tallied in July.
On an annual basis, home prices rose 12.8% over the same month last year, which marks an increase compared to the 12.3% rise recorded in July. The reading marks the highest level since February 2006. Despite the strong readings recorded in the past months, prices still remain 20.2% below the July 2006 peak.
S&P emphasized that housing prices continue to rise, but that the overall pace is slowing; monthly rates decelerated in 16 of the 20 cities surveyed between July and August. According to S&P, "the peak rate of gain in home prices was last April. Since then home prices continued to rise, but at a slower pace each month." S&P explained that this driven in part by recent increases in mortgage rates and a decline in mortgage applications.
Author: Carl Kelly, Economist