Home prices have been increasing for more than just the past few months. But, according to newly released numbers from the S&P Case-Shiller Home Price Indices, the increases seen this summer were widespread, consistent, and, in some cases, record setting. S&P’s index, which is among the leading measures of U.S. home prices, shows that prices were up nearly 20 percent over year-before levels in July. Craig J. Lazzara, managing director and global head of index investment strategy at S&P, says the increases have been extraordinary. “The last several months have been extraordinary not only in the level of price gains, but in the consistency of gains across the country,” Lazzara said. “Home prices in 19 of our 20 cities now stand at all-time highs, with the sole outlier (Chicago) only 0.3 percent below its 2006 peak.” While increasing prices are good for home sellers, they have put pressure on affordability levels. Fortunately, the rate of increases is expected to slow somewhat as the market begins to cool this fall. (source)
