‘Unstoppable’: August Home Prices Up 6.1 Percent Year-Over-Year

August home prices gained 6.1 percent year-over-year, up from 5.9 percent in July, according to the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index.

The 10-City Composite grew 5.3 percent in August, up from 5.2 percent in July. The 20-City Composite reported price growth of 5.9 percent in August, up from 5.8 percent in July.

The cities that experienced the highest annual increases in home prices were Seattle, 13.2 percent; Las Vegas, 8.6 percent; and San Diego, 7.8 percent.

The National Index posted a month-over-month gain of 0.5 percent in August, and the 10- and 20-City Composites both increased 0.5 percent.

“Home price increases appear to be unstoppable,” said David Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices, in a statement.

Home prices are rising because of low mortgage rates combined with an improving economy, he said, but they will not rise forever. The pool of buyers is shrinking, and short-term interest rates are moving upward with mortgage rates to follow, which has been a key factor in home price increases, Blitzer said.