The S&P/Case-Shiller home price index increased 5.1% in August, in line with expectations, after a 5.0% gain in July.

San Francisco, Denver and Dallas were the largest contributors to the rise, where prices climbed by 10.7%, 10.7% and 9.4%, respectively.

"Home prices continue to climb at a 4% to 5% annual rate across the country. Most other recent housing indicators also show strength," chairman of the index committee at S&P Dow Jones Indices David Blitzer said.

On a monthly basis, the S&P/Case-Shiller home price index rose by a seasonally adjusted 0.4% rate in August.

The S&P/Case-Shiller home price index measures single-family home prices in 20 U.S. cities.