From the WSJ:
Home prices rose in August, according to a report released Tuesday, suggesting the market has momentum heading into the final months of the year.
The S&P/Case-Shiller Home Price Index increased 4.7% in the 12 months ended in August, slightly better than the 4.6% gain recorded in July.
“The last three, four, five months, we’ve been on this very steady pace. I think that’s a good sign,” said Svenja Gudell, chief economist at home-tracker Zillow.
The S&P/Case-Shiller 20-city index jumped 5.1% year-over-year through August, after July’s 4.9% increase. Economists surveyed by The Wall Street Journal expected a 5.1% increase in the 20-city index.
The S&P/Case-Shiller 10-city index increased 4.7% from a year earlier, compared with a 4.5% increase in July.
Economists caution that home prices, which are rising about twice as quickly as incomes, represent one of the market’s biggest long-term challenges. A lack of new construction has created a supply shortage, magnifying the problem.
“People slowly but surely get priced out of the housing market,” said David Blitzer, managing director and chairman of the Index Committee for S&P Dow Jones Indices.