Home prices continued to rise in August, as expected.
The S&P/Case-Shiller home price index rose 0.1% during the month, and 5.1% compared to the prior year.
“Interestingly, a good portion of the overall home price growth we’re seeing, especially in cities, has been driven by strong growth in condominium values, which are currently appreciating more quickly than single-family homes,” said Zillow chief economist Svenja Gudell in a statement. “This is a sign of the times in terms of buyers’ preferences, as condos often represent a more affordable, more urban housing option that is particularly attractive to younger buyers.”
Home prices were forecast to have risen 0.1% month-on-month, and 4.8% year-on-year.
David Blitzer, managing director and chairman of the index committee for S&P Dow Jones Indices, noted that other housing indicators, including existing home sales and new home sales, continue to show the sector’s strength.