Case-Shiller reveals fastest price rise in two years

U.S. homes prices proved to be rising at a record pace, the latest S&P CoreLogic Case-Shiller Indices report noting a 5.7 percent annual increase in home prices. Displaying the fastest pace in two years, the index also showed a 5.2 percent gain year-over-year in August, up from 4.1 percent in July.

The remarkable surge in home prices continued into August as prices showed no signs of cooling down heading into the fall. By some measures, home prices are rising at a faster pace than they ever have – an incredible feat considering the market is rising from an already elevated level.

The supply of for-sale homes, already extremely tight, has only become more constrained in recent months, and historically low mortgage rates continue to encourage many buyers to enter the market.

This heightened competition for the few homes on the market has placed consistent, firm pressure on home prices for months now, and there are few signs that this will relent any time soon.

While the path of the overall economy is likely to be most directly dictated by coronavirus-related and political developments in the coming months, recent trends suggest that the housing market – which has basically withstood every pandemic-related challenge to this point – will continue its strong momentum in the months to come.