US: Home prices growth reaches highest pace since 2014 - Wells Fargo

The S&P CoreLogic Case-Shiller National Home Price Index rose 0.5% to 195.1 in August and shows home prices up 6.1%  year-to-year.  According to analysts from Wells Fargo,  gains continue to be broad based, led by huge increases in the West.

Key Quotes: 

“The S&P CoreLogic Case-Shiller National Home Price Index rose slightly faster than expectations, climbing 0.5 percent in August. The national index is now up 6.1 percent year-to-year, which is the largest yearly gain since June 2014. The continued acceleration of home prices has occurred despite fairly tepid wage and salary growth. Wages have risen just 3.6 percent over the year, further straining affordability.”

“The top five year-to-year price gains are all in western markets, many of which are land constrained. Las Vegas recently popped up to second place but prices remain well below their prior peak. Just eight of the Case-Shiller’s 20 markets have exceeded their prior price peaks. The national index is 5.6 percent above its previous peak, however, as price swings have been less extreme outside many of the Case-Shiller major markets.”