United States: House prices inch up in August
October 25, 2016
The S&P/Case-Shiller 20-city home composite index rose 0.4% in August over the previous month. The result, which marked a fourth consecutive monthly moderation, came in below the 0.6% increase recorded in July, but overshot the 0.3% rise the markets had expected. When adjusted for seasonal factors, home prices increased 0.2% over the previous month, which came in above the flat reading observed in July.
In annual terms, home prices rose 5.1% in August, which edged up from the 5.0% increase recorded in July. In a statement, S&P said that Denver, Portland and Seattle continued to report strong increases in prices.
According to S&P, “supported by continued moderate economic growth, home prices extended recent gains.” S&P also signaled that, “other housing data including sales of existing single family homes, measures of housing affordability, and permits for new construction also point to a reasonably healthy housing market.”
Author: Ricardo Aceves, Senior Economist