US: Home price index surpasses July 2006 peak - Wells Fargo

Analysts from Wells Fargo, explained that US home price indexes continued to rise in September, with some climbing above the 2006 peak. 

Key Quotes: 

“All three home price indices rose in September. The national index reported the largest increase, climbing 0.8 percent to reach a new peak at 184.8. Adjusted for inflation, however, prices remain about 14 percent below their previous peak.”

“The national home price index has risen 5.5 percent over the past year, which, when coupled with the recent pick up in mortgage rates, is adding further to affordability challenges. 

“While national home prices reached a new high in September, home prices in 13 of the 20 metro areas in the 20-City index remain below pre-recession levels. Las Vegas, Phoenix and Miami remain more than 20 percent below their prior peaks.”

“On a year-to-year basis, home prices in Seattle, Portland and Denver continue to lead gains, reflecting strong job growth and increased in-migration but limited new home construction.”