Home Industry News Home prices rise at fastest pace in two years

Home prices rise at fastest pace in two years

Home prices rise at fastest pace in two years
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The National Association of Realtors reports that even amid a global pandemic, home prices are rising at a rapid pace. Citing the S&P Dow Jones Indices, Realtor.com says the CoreLogic Case-Shiller 20-city price index posted a 5.2% year-over-year gain in August, up from revised 4.1% in the previous month.

The Home Price Index, released by the Federal Housing Finance Agency, rose at a seasonally adjusted annual rate of 19.6% in August, the National Association of Home Builders reports. This follows a 14% increase in July. On a year-over-year basis, the FHFA Home Price NSA Index rose by 8.1% in August, after an increase of 6.5% in July.

All of the 19 large cities tracked by Case-Shiller posted increases in home prices in August.

At the same time, strong summer sales numbers in both new homes and existing homes have contributed to improved housing availability expectations among buyers. Of buyers currently in the market, 35% have said they see more available houses in their price range in the third quarter than three months earlier, which NAHB adds was the peak of the COVID-19 crisis.

The housing sector is showing strength across the board, Realtor.com says, a result of a combination of low mortgage rates, rising demand, and shift in consumer preferences caused by the pandemic.