August Sees Record Highs in US Home Prices for Seventh Consecutive Month

Home prices in the US reached another record high in August, with the S&P CoreLogic Case-Shiller National Home Price Index increasing 0.9% month over month and 2.6% annually. The index tracking existing home prices in the 20 largest US cities also gained 1.0% in August, exceeding expectations. However, the rise in prices has led to a historical low in housing affordability, with the National Association of Realtors reporting that the affordability index dropped to its lowest point since 1989. The increase in mortgage rates and a lack of supply have contributed to the affordability challenges. Despite this, the strong demand for housing continues to outpace supply, indicating an optimistic view of future results.