US home prices rise 6.2% year-over-year in August

Prices are forecast to rise 5.3% over the next year: Case-Shiller

Home prices in the U.S. are on the rise, as lack of inventory and low interest rates help push prices upwards.

The S&P CoreLogic Case-Shiller Index, which measures home prices nationwide, reported 6.2 percent growth in home prices in August, year over year, and a forecast of 5.3 percent growth in the next 12 months, up slightly from the 5 percent increase projected in July.

The 10-city index gained 4.3 percent, compared to 4.1 percent in July, and the 20-city index gained 5.1 percent up from the 5 percent increase reported in July, with price acceleration highest in Tampa, Phoenix and New York.

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Other indicators also point to a strengthening housing market. Single-family starts rose 8.1 percent in September to 783,000, according to the Commerce Department, which is still far below the historical average of 1.4 million starts per year.

The share of first-time buyers rose to 34 percent in September, the highest since July 2012, according to the National Association of Realtors.

Month-over-month prices rose 0.5 percent in August before seasonal adjustment, and 0.6 percent. [WSJ]Chava Gourarie