Home prices increased in August and, on average, are back to their levels from mid-2004, according to the S&P Dow Jones Indices for its S&P/Case-Shiller Home Price Indices.
The data through August show that the 10-city and 20-city composites increased 12.8% year-over-year, and compared to July, the annual growth rates accelerated for both composites and 14 cities.
On a monthly basis, the 10-city and 20-city composites gained 1.3% in August. Las Vegas led the cities with an increase of 2.9% – its highest since August 2004. Detroit and Los Angeles followed with gains of 2.0%, according to the data.
‘Both composites showed their highest annual increases since February 2006. All 20 cities reported positive year-over-year returns," says David M. Blitzer, chairman of the index committee at S&P Dow Jones Indices. ‘The monthly percentage changes for the 20-city composite show 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. This month, 16 cities reported smaller gains in August, compared to July. Recent increases in mortgage rates and fewer mortgage applications are two factors in these shifts."
According to the S&P Dow Jones Indices, as of August, average home prices across the U.S. are back to their mid-2004 levels. Measured from their June/July 2006 peaks, the peak-to-current decline for both composites is approximately 20%-21%. The recovery from the March 2012 lows is 22.1% and 22.7% for the 10-city and 20-city composites.
The data also shows that 14 cities showed year-over-year rate acceleration in August versus July. Las Vegas was the leader with an annual rate of 29.2% – its highest since March 2005. Denver and San Francisco posted their highest growth rates since August 2001 and March 2001, respectively. Although Dallas did not break into double-digit returns, the city posted its highest annual gain since the data was first published in January 2000.