US: Home prices extended gains in August - Wells Fargo

Analysts from Wells Fargo, point out that home price indexes continue to rise and are likely to surpass the 2006 peak in the coming months. 

Key Quotes: 

“The S&P CoreLogic Case-Shiller U.S. National Home Price Index rose 0.6 percent in August, pushing the yearover-year rate to 5.3 percent. The 10-City and 20-City Composite indices also edged higher on the month.”

“U.S. home prices rose 0.6 percent in August, as prices continue to be supported by low inventories of for-sale homes and moderate economic growth. The National Home Price Index stood just 0.1 percent below its pre-recession peak in August and is likely to surpass its 2006 level in the coming months.” 

“In a separate release, the FHFA Home Price Index also popped up sharply in August, rising 0.7 percent.”

“The drivers of home price appreciation have shifted over the past year, as some cooling is evident in the year-over-year trend in major markets, including San Francisco and Los Angeles, while home price growth in other pockets around the U.S., such as Denver and Portland, are trending near post-recession highs.”