The S&P Case-Shiller house price index for August 2013 showed a rise in all 20 major metropolitan areas for the first time since April and beat expectations. The fact that home prices climbed so much despite mortgage rates on the rise and demand cooling came as a surprise, according to Jennifer Lee, Senior Economist, BMO Capital Markets. The 20-City Composite of metropolitan areas rose 0.9 percent, higher than expectations of 0.6 percent. | Atlanta | 1.5 | 18.4 |
The move follows four straight months of slowing gains (April +1.7 percent, May +1.0 percent, June +0.9 percent, July +0.6 percent) and leaves prices up 12.8 percent year over year, the strongest annual gain since February 2006.
"We have similarly seen gains in the FHFA's house price measure, but given that they are less steep, we may start to see the Case-Shiller index cool some more in coming months," said Ms. Lee. "That being said, homeowners can take comfort in the fact that their home is worth more today than it was a year ago, with some cities seeing that increase well into the double digits."
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