Index: Home prices up 5.1% in August

Home prices in 20 major U.S. cities continued to rise at a steady pace in August, according to data Tuesday from S&P CoreLogic Case-Shiller.

The 20-city property values index increased 5.1 percent from August 2015 (forecast was 5 percent) after climbing 5 percent in the year through July.

Home prices have been rising at an annual pace of around 5 percent, supported by continued hiring, rising wages and low-cost mortgages amid a limited supply of houses, especially on the lower price end. The report follows more timely data showing sales of previously owned homes increased more than projected in September, helped by a bigger share of first-time buyers, considered vital to the housing recovery. Higher prices may persuade more owners to put their properties up for sale and alleviate shortages.

“Supported by continued moderate economic growth, home prices extended recent gains,” David Blitzer, chairman of the S&P index committee, said in a statement. “Other housing data including sales of existing single family homes, measures of housing affordability, and permits for new construction also point to a reasonably healthy housing market.”