The S&P/Case-Shiller Home Price Indices increased 12.8% in August for both its 10-City and 20-City Composites compared to the prior year. Both composites advanced 1.3% from the prior month. The index measures residential real estate prices, with the composites measuring 20 and 10 metropolitan areas in the United States. However, readers of this blog are most interested in prices for New York City.
Those looking for a place to purchase should be prepared to pay more. In the metro New York area, prices rose 3.6% from a year ago. From July to August, home values increased by 1.1%, following a 1.5% advance the previous month.
In the spring, it was reported by The Real Deal, a publication covering New York City real estate, that a shortage of inventory and low mortgage rates were triggering bidding wars. But, mortgage rates, although still low by historical standards, have risen over the past few months. Whether this puts a damper on home prices remains to be seen, but it seems economists have stated home buying still remains attractive compared to renting.