Case-Shiller Home Price Index Shows Largest Increase In Seven Years

The closely watched S&P/Case-Shiller home price index climbed 0.93 percent in August, higher than expected. Year-over-year home prices were up a scorching 12.82 percent nationally, the largest annual gain since the housing bubble.

“All 20 cities reported positive year-over-year returns. Thirteen cities posted double-digit annual gains. Las Vegas and California continue to impress with year-over-year increases of over 20 percent,” said David Blitzer, chairman of the Index Committee at S&P.

According to the report, both Dallas and Denver hit all-time highs, up 10.1 percent and 9 percent, respectively.

The fastest home price appreciation was seen in Las Vegas, where prices rose a sizzling 29 percent from the same time last year.

While home prices across the country continue to rise rapidly, the pace of the increases has slowed since April, probably due mainly to rising mortgage rates over the summer.

Most experts say moderating price growth is a good thing long term.

“It’s good to see the pace of home value appreciation moderate, allowing the market to get back into a more sustainable balance and not topple over,” said Stan Humphries, chief economist at

“Home value appreciation is better when it’s boring, and we expect to see continued moderation,” he said.