According to the S&P/Case–Shiller home price index U.S. single-family home prices rose in August and posted their strongest annual gain since February 2006. Prices were up 12.8 percent compared to last year and exceeded economists’ expectations of 12.5 percent. Despite higher mortgage rates in recent months the report suggests that the housing market continues to recover.
“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 of home price tracker Zillow.com. “Home value appreciation is better when it’s boring, and we expect to see continued moderation.”