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Hepp said that a surge in investor demand this summer had amplified the strong demand among traditional homebuyers.
“Together, demand pressures continue to drive home price growth higher despite some early signs of buyer fatigue and slight improvements in the availability of for-sale homes,” she said. “And while strong home price appreciation rates are narrowing the pool of buyers, particularly first-time buyers, the depth of the supply and demand imbalance and robust demand among higher-income earners will continue to push prices higher.”
Phoenix, San Diego, and Tampa posted the highest annual increases among the 20 cities in August. Phoenix was at the top with a 33.3% price gain, San Diego followed at 26.2%, and Tampa reported a 25.9% increase. Eight of the 20 cities experienced higher price increases in August than in July.