Home prices climb as housing recovery continues

Home prices climbed across the country in August by the highest level in over two years, as the recovery in the housing market continues to solidify.

Home values in 20 cities nationwide climbed 2 percent in the year ending in August, the highest level of growth since July 2010, according to the latest S&P/Case-Shiller Home Price Indices. Prices were up 0.9 percent from July to August — 0.5 percent when seasonally adjusted.

“Home prices continued climbing across the country in August,” says David M. Blitzer, chairman of the Index Committee at S&P Dow Jones Indices. “Nineteen of the 20 cities and both composites showed monthly gains in August. Seventeen cities and both composites posted positive annual returns in August 2012.

"The sustained good news in home prices over the past five months makes us optimistic for continued recovery in the housing market," he added.

The climbing prices are the latest evidence of the increasingly stable recovery of the housing market, which has languished for years since the sub-prime mortgage crisis. Single family housing starts are 43 percent higher than 2011 levels, existing and new home sales are increasing and mortgage defaults are dropping.

Of the 20 cities tracked by the index, all but three — Atlanta, Chicago and New York — have posted gains in home prices over the last year. Phoenix is leading the charge, as home prices now stand 18.8 percent higher than they did one year ago, the only city to post double-digit gains. Detroit and Minneapolis posted gains of 7.6 and 7.4 percent, respectively.

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