2013's 'runaway' home price increases the greatest in 9 years

According to S&P/Case-Shiller’s 20-city composite index, home prices this year have risen 11.2 percent through July, the greatest year-to-date jump of the index since 2004, the Wall Street Journal pointed out.

The index increase “offers the latest sign of runaway price inflation earlier this year, amid short supplies of homes for sale, heavy demand and very low mortgage rates,” the Journal noted.

However, according to the Journal, since the index reflects home sales in the earlier part of the year, the effect, whatever it may be, of rising interest rates on home prices has yet to be seen.

Source: Wall Street Journal