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Where Home Prices Surged in August: Several markets that saw accelerating home prices in August reached new home price peaks, according to a new housing ...report by RealtyTrac.

Ohio markets in particular stood out. For example, Cincinnati saw a 22 percent annual appreciation in August compared to a 4 percent depreciation a year ago. Cleveland posted a 23 percent annual appreciation in August compared to a 1 percent last year, RealtyTrac reports.

With investors pulling back, conventional home buyers are finding their way back into the market.

“The Ohio markets continue to experience an increase in overall pricing, but a noticeable decline in total units sold,” says Michael Mahon, executive vice president/broker at HER REALTORS®, covering the Cincinnati, Columbus, and Dayton markets in Ohio. “The declining year-over-year sales unit numbers can be attributed to the lack of available inventory, particularly within the first-time home buyer price range. As cash sales continue to decline within the Ohio markets, the available inventory is continuing to experience improvement, which shows further stability and growth of the Ohio housing stock.”

Here’s a look at the major markets posting some of the largest home price appreciation in August compared to a year ago, according to RealtyTrac.
1. Cincinnati: 22% annual appreciation in August; 4 percent depreciation a year ago
2. Cleveland: 23% annual appreciation in August; 1 percent depreciation a year ago
3. Miami: 20% annual appreciation in August; 15 percent depreciation a year ago
4. Pittsburgh: 7% annual appreciation in August; 3 percent depreciation a year ago
5. Seattle: 8% annual appreciation in August; 7 percent depreciation a year ago.

Of the 197 major markets tracked, 22 cities—or 11 percent—reached new median home price peaks in August, notably Pittsburgh, Cincinnati, Columbus, Charlotte, and Austin, Texas, according to the RealtyTrac report.

Overall, RealtyTrac’s report showed that the median price of residential properties nationwide sold in August—including both distressed and non-distressed sales—was $195,000, up 3 percent from the previous month and up 15 percent from a year ago. It is now at the highest level since August 2008. Source: RealtyTrac

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Consumers Aren't Losing Confidence in Home Prices:

Despite the pace of home sales and home price appreciation slowing, most Americans remain optimistic about the housing market. More than half of Americans – 53 percent -- recently surveye...d say they believe home prices will continue to rise within the next 12 months, according to Bankrate’s September Financial Security Index, a survey of more than 1,000 adults about their personal finances.

Yet, those expected home price rises didn’t stretch to everyone: Those living in suburban and rural areas were more than twice as likely to say that prices would drop compared with urban dwellers.

"This may not be a great market, but it's a good market," says Jed Smith, managing director of quantitative research at the National Association of REALTORS®. "Prices are still increasing. The market is just stabilizing." The median expected price increase among NAR’s REALTOR® members for the next 12 months is 3.4 percent, Smith notes.

In the Bankrate.com survey, only 8 percent of respondents said they believed home prices will fall while 31 percent said they felt prices would hold steady.

"If they are confident in the housing market, they are more likely to participate and maybe put in a bid that is closer to the asking price," says Greg McBride, Bankrate's chief financial analyst. "People in a lot of markets are getting close to the asking price, if not more."

Americans’ overall optimism over home prices may stem from greater confidence over their personal finances. Americans are feeling more financially secure, in their job security and net worth, according to the index. Twenty-six percent of Americans feel more secure about their jobs compared with a year ago, and 27 percent of respondents said their net worth is higher this year than last year.

"Housing is one of two things — the stock market being the other — that consumers look to as an indicator for whether things are headed in the right direction or the wrong direction," says McBride. "The expectation of continued home-price increases underscores an expectation for continued improvement in the job market, household finances, and the overall economy." Source: “September 2014 Financial Security Index Charts,” Bankrate.com (September 2014) and “Consumers Still Expect Rising Home Prices,” Bankrate.com (September 2014)