U.S. Home Prices Continue Rising in July

The S&P/Case-Shiller home price index for July rose sharply again compared with the June index, and house prices were higher on an annual basis as well. The 10-city composite showed that average home prices rose by 1.5% and the 20-city composite rose by 1.6% in July, when compared with the June index.

The 10-city composite index showed an annual home price gain of 0.6% and the 20-city composite rose 1.2% compared with June readings, which were flat and up 0.6%, respectively. For the third consecutive month, all 20 cities and both composite scores recorded positive changes.

Only four cities — Atlanta, Chicago, Las Vegas and New York — showed an annual decline in home prices when compared with July of 2011. And there is even some good news there: Atlanta’s decline fell below double digits for the first time in nine months.

The chairman of the S&P index committee said:

The news on home prices in this report confirm recent good news about housing. Single family housing starts are well ahead of last year’s pace, existing home sales are up, the inventory of homes for sale is down and foreclosure activity is slowing. All in all, we are more optimistic about housing. Upbeat trends continue. For the third time in a row, all 20 cities and both Composites had monthly gains. Stronger housing numbers are a positive factor for other measures including consumer confidence.

The S&P/Case-Shiller report is available here.

Paul Ausick