The Case-Shiller Home Price Index figures for August 2013 show home prices continued to rise nationwide although the monthly rate of increase continued to decelerate as mortgage rates went up, resulting in fewer mortgage applications. The 10-city composite index increased 12.8% over the past year, the highest increase since February of 2006, and 1.3% since July 2013. Single-family home prices in the New York metro area increased 3.6% over the past year and 1.1% since July. While New York’s year to year increase was its highest since September 2006, it was the lowest among the 20 markets measured in the Case-Shiller Home Price Index.
The Southwest and California continue to account for much of the growth: home prices in Las Vegas increased 25.6% over the past year and San Francisco, Los Angeles, San Diego and Phoenix all saw home prices increase above 15%. Despite its slower growth, New York’s housing prices remain strong: only Los Angeles, San Diego, San Francisco and Washington, DC, exhibit higher prices.
Robert Shiller, co-founder of the Case-Shiller Home Price Index with Karl Case, recently won the 2013 Nobel prize in economics for his empirical analysis of asset prices. We congratulate Mr. Shiller on earning this prestigious award.