U.S. home prices hit record high in August

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U.S. home prices hit record high in August

U.S. home prices grew on record in August, but showed signs of a potential slowdown in the months ahead.

Home prices rose 19.8% year over year in August, matching the record pace from July, according to the national Case-Shiller index. Prices are now 45.5% above their 2006 peak.

The slowing acceleration in home prices suggests that buyer fatigue is setting in, particularly among low-priced homes where the acceleration in price growth from the previous month has been larger compared to higher-priced homes, said CoreLogic Deputy Chief Economist Selma Hepp.

The 10 City Composite Index saw price gains slow to 18.6% in August from 19.2% in the previous month. Prices in the 20-city composite jumped 19.7% annually, below the 20% gain in July.

Phoenix's 33.3% increase led all cities for the 27th straight month. San Diego 26.2% and Tampa Bay 25.9% round out the top three annual gains. Seattle 24.3% was notably absent from the top three for the first time in several months, as its annual price appreciation slowed from 25.5% in July.

Price gains were once again broadly distributed, as all 20 cities rose, although in most cases at a slower rate than had been the case a month ago, said Craig Lazzara, managing director and global head of index investment strategy at S&P Dow Jones Indices.

Just eight of the cities in the 20-city index reported stronger month-over-month price growth in August than in July. Prices rose by a double-digit pace across all regions, but were strongest in the Southwest 24.1% Every city except Windy City saw record highs, with prices in Chicago 0.3% below their 2006 peak.