Data through August 2013 in the S&P/Case-Shiller Home Price Indices shows that the 10-City and 20-City Composites increased 12.8 percent year-over-year. Compared to July 2013 in a month-to-month look, the annual growth rates in studied cities accelerated across the board.
On a monthly basis, the 10-City and 20-City Composites gained 1.3 percent in August. Las Vegas led the cities with an increase of 2.9 percent, its highest since August 2004. Detroit and Los Angeles followed with gains of 2 percent.
“The 10-City and 20-City Composites posted a 12.8 percent annual growth rate,” says David M. Blitzer, chairman of the Index Committee at S&P Dow Jones Indices. “Both Composites showed their highest annual increases since February 2006. All 20 cities reported positive year-over-year returns. Thirteen cities posted double-digit annual gains.
“Las Vegas and California continue to impress with year-over-year increases of over 20 percent. Denver and Phoenix posted 20 consecutive annual increases; Miami and Minneapolis 19. Despite showing 26 consecutive annual gains, Detroit remains the only city below its January 2000 index level.
Blitzer says the upswing in home price increases peaked in April 2013. Since then, prices have continued to go up but at a slower rate. He says “increases in mortgage rates and fewer mortgage applications are two factors in these shifts.”