Home Prices in 20 U.S. Cities Continue Rising at Steady Pace

Home prices in 20 major U.S. cities continued to rise at a steady pace in August, according to data Tuesday from S&P CoreLogic Case-Shiller.

The 20-city property values index increased 5.1% from August 2015 (the forecast was 5%) after climbing 5% in the year through July. The national home-price gauge was up 5.3% from 12 months earlier. On a monthly basis, the seasonally adjusted 20-city measure rose 0.2% from July.

Home prices have been rising at a pace of around 5% for two years, supported by continued hiring, rising wages and low-cost mortgages amid a limited supply of houses, especially on the cheap end. The report follows more timely data showing sales of previously owned homes increased more than projected in September, helped by a bigger share of first-time buyers, considered vital to the housing recovery. Higher prices may persuade more owners to put their properties up for sale and alleviate shortages.

"Supported by continued moderate economic growth, home prices extended recent gains," David Blitzer, chairman of the S&P index committee, said in a statement. "Other housing data including sales of existing single-family homes, measures of housing affordability, and permits for new construction also point to a reasonably healthy housing market."

All 20 cities in the index showed a year-over-year gain, led by an 11.7% advance in Portland, Ore., and an 11.4% advance in Seattle; New York had the smallest increase at 1.7%. After seasonal adjustment, San Francisco had the biggest month-over-month gain at 1%. Atlanta, Chicago, Detroit and Las Vegas had declines of 0.1%, while prices in Minneapolis and New York were little changed.