Home prices rise at fastest pace in two years

home prices
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The National Association of Realtors reports that even amid a global pandemic, home prices are rising at a rapid pace. Citing the S&P Dow Jones Indices, Realtor.com says the CoreLogic Case-Shiller 20-city price index posted a 5.2% year-over-year gain in August, up from revised 4.1% in the previous month.

The Home Price Index, released by the Federal Housing Finance Agency, rose at a seasonally adjusted annual rate of 19.6% in August, the National Association of Home Builders reports. This follows a 14% increase in July. On a year-over-year basis, the FHFA Home Price NSA Index rose by 8.1% in August, after an increase of 6.5% in July.

All of the 19 large cities tracked by Case-Shiller posted increases in home prices in August.

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At the same time, strong summer sales numbers in both new homes and existing homes have contributed to improved housing availability expectations among buyers. Of buyers currently in the market, 35% have said they see more available houses in their price range in the third quarter than three months earlier, which NAHB adds was the peak of the COVID-19 crisis.

The housing sector is showing strength across the board, Realtor.com says, a result of a combination of low mortgage rates, rising demand, and shift in consumer preferences caused by the pandemic.

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