Home prices in the U.S. reached a record high in August amid a historically low interest rate, according to a report released Tuesday.
The S&P CoreLogic Case-Shiller National Home Price Index, which tracks housing markets across the U.S., rose 6.1% year-over-year to 195.05, the highest level since July 2007, when the index was first launched.
The national home price index was 45.6% higher than 2012, the lowest point after the financial crisis.
"Home price increases appear to be unstoppable," David M. Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices, said in the report. "Currently, low mortgage rates combined with an improving economy are supporting home prices," he said.
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The housing market has outpaced other major economic sectors during the 12 months leading to August, according to Mr. Blitzer. Compared to the 6.1% increase in national home prices, the consumer price index increased 2.2% while wages rose 3.6% over the same period.
At the metro level—reflected in S&P Dow Jones’s 20-city index and a 10-city index—Seattle had the strongest price growth. The West Coast city saw a 13.2% annual growth in home prices, more than double the national average.
Following Seattle were Las Vegas (8.6%), San Diego (7.8%), as well as Denver, Detroit and Portland, all of which recorded a 7.2% annual increase in home prices.
Home prices in all 20 cities included in the index rose by mid-single digit, leading to a 5.9% increase in the 20-city composite during the last 12 months. Home prices in nine out of the 20 cities hit all-time highs.
On a monthly basis, prices were up in all 20 cities except Atlanta, with the composite gaining 0.4% to 202.87.
| Home Price Trends in Selected U.S. Cities | |||
| City | Price Index | Y-O-Y Change | M-O-M Change |
| Seattle, WA | 231.57 | 13.2% | 0.2% |
| Las Vegas, NV | 165.29 | 8.6% | 1.0% |
| San Diego | 245.55 | 7.8% | 0.9% |
| Denver, CO | 201.65 | 7.2% | 0.3% |
| Miami, FL | 226.74 | 4.9% | 0.2% |
| New York, NY | $193.76 | 4.4% | 0.9% |
| Composite-10 | 216.49 | 5.3% | 0.5% |
| Composite-20 | 202.87 | 5.9% | 0.4% |
| U.S. National | 195.05 | 6.1% | 0.5% |
| Source: S&P Dow Jones Indices and CoreLogic | |||
The S&P CoreLogic Case-Shiller 10-city composite index rose 5.3% annually and 0.5% month-over-month to 216.49.However, home price growth won’t likely be sustained as mortgage rates climb, Mr. Blitzer cautioned in the report. "The Federal Reserve is pushing short-term interest rates upward and mortgage rates are likely to follow over time, removing a key factor supporting rising home prices."