(Reuters) - U.S. single-family home prices rose in August at a slightly faster pace than in July and in line with expectations, a closely watched survey said on Tuesday.
The S&P/Case Shiller composite index of 20 metropolitan areas gained 5.1 percent in August on a year-over-year basis compared with 4.9 percent in July and was in line with estimates for 5.1 from a Reuters poll of economists.
“A notable part of today’s economy is the continuing low inflation rate; in the year to September, consumer prices were unchanged,” David M. Blitzer, Managing Director and Chairman of the Index Committee for S&P Dow Jones Indices, said in a release.
“One result is that a 5 percent price increase in the value of a house means more today than it did in 2005-2006, the peak of the housing boom when the inflation rate was higher. The rebound from the recent lows was faster than the 1997-2005 housing boom, and also much less driven by inflation.”
Reporting by Sinead Carew; Editing by Chizu Nomiyama