US home prices rose in August
The Standard & Poor’s CoreLogic Case-Shiller 20-city home price index rose 5.1 percent in August, after a 5 percent gain in July. Portland, Seattle and Denver reported the strongest year-over-year increases for the seventh month in a row, with gains of 11.7 percent, 11.4 percent and 8.8 percent, respectively.
Steady hiring, low mortgage rates and some early signs of rising pay have encouraged more Americans to buy homes. Sales of existing properties increased 3.2 percent in September from August, the National Association of Realtors said.
“Demand is high and enthusiasm for homeownership remains strong, especially among all-important young, minority and would-be first-time buyers,” Svenja Gudell, chief economist at real estate data provider Zillow, said. “Still, the market can’t stay on this course forever, and continued inventory shortages are leading to intense competition, escalating prices and mounting buyer frustration, with the average home search over the past year taking more than four months.”