Home prices in the Chicago area and in most of the nation rose in August, according to the S&P/Case-Shiller home price index.
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“Home prices continue to climb at a 4 percent to 5 percent annual rate across the country”, says S&P’s David M. Blitzer. Three years of solid hiring and historically low mortgage rates have enabled more Americans to buy homes. Sales of previously owned homes increased sharply in September, climbing 4.7% to a seasonally adjusted annual rate of 5.55 million, the National Association of Realtors said last week.
The largest annual increases were in San Francisco, 10.7 percent, Denver, 10.7 percent and Portland, 9.4%.
The 10-city index gained 4.7% from a year earlier, compared with a 4.5% increase in July. The 10-City Composite increased 4.7% in the year to August compared to 4.5% in the prior month. Prices slipped 0.1 percent in San Francisco and were unchanged in Charlotte, North Carolina.
The Commerce Department released a separate report on Monday showing that new home sales fell by much more than expected in the month of September. That’s a reassuring sign that the housing sector has so far been insulated from weaker growth overseas that is slowing growth in the US manufacturing and energy sectors. Housing starts topped an annual rate of 1.2 million units in the latest report with continuing strength in both single family homes and apartments. Home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®, S&P Dow Jones Indices LLC has over 115 years of experience constructing innovative and transparent solutions that fulfill the needs of investors.
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Economists surveyed by The Wall Street Journal expected a 5.1% increase in the 20-city index. In September, the number of available homes was equal to just 4.8 months’ of sales, below the six months that is typical of a balanced market.
