Global Property Guide

Financial Information for the Residential Property Buyer

Home prices in the United States have surpassed the previous record set during the housing boom in 2006, according to the recently-released Standard & Poor’s Case-Shiller index. 

The average home price in September increased 0.1% above the July 2006 peak. However, the index remains about 16% below peak if adjusted for inflation. The Case-Shiller index measures repeat sales of single-family homes. 

Home prices in America registered a month-on-month increase of 5.1% in September, the 53rd consecutive month of positive gains. 

"The new peak set by the S&P Case-Shiller CoreLogic National Index will be seen as marking a shift from the housing recovery to the hoped-for start of a new advance," David M. Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices, said in a statement.

Home prices peaked in July, 2006 and then plummeted during the 2007-07 housing crisis. They bottomed out in 2012. Fueled by historically low mortgage rates, homes prices finally started an upward climb in 2013. 

Seattle, Portland, and Denver had the biggest year-over-year gains among the 20 cities. Seattle had an 11% annual increase. Home prices increased 10.9% increase in Portland, while by 8.7% in Denver. The weakest market in terms of price gains was Washington with an increase of just 2.7%.

Experts say that price gains signals a healthy recovery in the residential property markets, rather than a bubble-like situation.

"Housing indicators are giving positive signals: sales of existing and new homes are rising and housing starts at an annual rate of 1.3 million units are at a post-recession peak," said Blitzer.