Home Prices Rose 0.6% in July, Case-Shiller Says The U.S. housing sector's long, slow journey to health continued in midsummer, as home prices rose a better than expected 0.6% in July from June, on a non-seasonally-adjusted basis, according to the S&P/Case-Shiller U.S. National Home Price survey. Home prices in the 20-city index also rose a non-seasonally adjusted 3.2% on a year-over-year basis.

Economists surveyed by Bloomberg had expected home prices to fall 0.1% in July from June, and rise 3.1% in July, on a year-over-year basis, after an 0.3% June from May increase, and a 4.2% increase in June, on a year-over-year basis.

Case-Shiller's 10-city index also rose a non-seasonally adjusted 0.8% in July from June, and 4.1% on a year-over-year basis, after rising a non-seasonally adjusted 1.0% in June from May, and 5.2% on a year-over-year basis.

Stabilizing Home Prices Seen

David M. Blitzer, chairman of the Index Committee at Standard & Poor's, said there are signs of improvement in the U.S. housing sector, but one should not expect large median home price gains in the months ahead.

"Home prices crept forward in July. Ten of the 20 cities saw year-over-year gains and only one -- Las Vegas [down 4.9% compared to July 2009 ] -- made a new bottom, as the impact of the first time home buyer program continued to fade away," Blitzer said, in a statement. "The year-over-year growth rates for 16 of the cities and both Composites weakened in July compared to June. While we could still see some residual support from the home buyers' tax credit, which covers purchases closing through September 30th, anyone looking for home prices to return to the lofty 2005-2006 might be disappointed. Judging from the recent behavior of the housing market, stable prices seem more likely."

Year-over-year percentage price changes in major U.S. cities were as follows: New York, up 0.6%; Chicago, down 1.7%; Boston, up 2.8%; Washington, D.C., up 6.5%; Atlanta, up 0.2%; Tampa, down 3.2%; Miami, up 0.4%; Dallas, down 0.4%; Denver, down 0.1%; Los Angeles, up 7.5%; San Francisco, up 11.2%; and Seattle, down 1.6%.

Originally greeted by Wall Street with a shrug, the S&P/Case-Shiller home price reports rose to market-mover status in 2008 as it became clear that the U.S. housing boom of the past decade was, in fact, a bubble fueled considerably by mortgage market excesses.

Is the Glass Half-Full or Half-Empty?

Put July's home price report in the "to be continued" category, as it contained both strengths and weaknesses.

On the positive side, the 0.6% one-month gain in July for the 20-city index was substantially better than the 0.1% dip that had been forecast. On the downside, over-over-year gains for the 20-city index slowed to a 3.2% pace in July from a 4.2% pace in June, about what had been expected.

An economic bull would see see further indications of home price stabilization in the one-month data, while an economic bear would perceive a danger sign in the slowing rate of increase in the year-over-year price data.

As Blitzer underscored, given that the July data were still skewed by the lingering effects of the federal government's home buyers tax credit, economists and Realtors will likely need two to three more months of data before they can gauge the true strength of the housing sector.

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jhonekate

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July 24 2013 at 1:35 PM Report abuse rate up rate down Reply
ReneeR

One more thing...what they have done by bailing out the banks was a sin. My house has now been on the market over 8 mths due to the banks not giving people a mortgage. You bailed out the wrong ones and didnt make them sign anything as to how they would distribute the money the gov't gave them...Good job again..Washington!!!!!

December 29 2010 at 2:15 PM Report abuse rate up rate down Reply
ReneeR

What ever hapened to a gov't for the people??? Was that all BS too? Our gov't has taken over this country and NOT for the people. They all need to be replaced. They make dissions for us that will NEVER effect them. They don't pay into Social Security, Medicare or any of the things we are short on. Who are they to make dissions on how it is to be paid out. They as American citizens SHOULD be paying into all the things we pay into. No one is to be excluded. They don't have the right to have better benefits than we do. They say the inflation rate is FLAT...where do they live???? I am a senior who hasn't gotten the small raise we are intitled to per yr for 2 yrs now. Flat...what does that mean? Gas is over $3.00 per gal, milk is over $4.00 Bread over $3.50. Where the heck are they shopping? Is it because the are so rich they don't see it????
It makes me sick...they need to be thrown out..and their party has nothing to do w/it!

December 29 2010 at 2:07 PM Report abuse rate up rate down Reply
Robert & Lisa

And as usual, gold continues to hit new highs. As the world discovers how far into debt Obama has put us, the less our money is worth.

September 29 2010 at 4:15 AM Report abuse +1 rate up rate down Reply
johnskii

WOW JOE!!! 0.6%! WOW!!! You can explain that by human error processing the data. It could even be -2.0% if you look at it that way......

September 29 2010 at 12:47 AM Report abuse +1 rate up rate down Reply
jvsodano

Does anyone really believe that home prices have risen??? When bank repos are the highest in history, some bean counter expects me to believe that home prices actually rose? This makes no sense at all. I am voting every democrat out. The only way this economy will sustain itself is by being self supporting. We need to produce our own energy, grow more crops, manufacture more products at home, and control govt spending. It's not rocket science , it's getting back to the basics.

September 28 2010 at 9:00 PM Report abuse +1 rate up rate down Reply
monseigneurdev

November 2 will be the most expensive campaign in human history. Trillions have been spent to prop up Congress' real estate portfolios and create a pleasing but jobless economic facade.

September 28 2010 at 5:21 PM Report abuse +1 rate up rate down Reply
monseigneurdev

Obama's Democrats continue the assault against the American Middle Class. They are printing and depreciating the dollar so gold is soaring and deferred inflation will hurt the middle class every time they pull out their wallets. One of the great barriers to entering the middle class is a quality and affordable education. The Liberal professors (including professor Obama) and the universities have made higher education unaffordable and intimidatingly expensive. American youth will continue to "fail to launch" because they are saddled with mortgage sized payments leaving home for college as naive and protected teenagers. American children will not be able to buy their first home, get married, raise children when they are stuck will tens if not hundreds of thousands in debt at the age of 22. The U.S economy will remain uncompetitive for the forsee-able future.

September 28 2010 at 5:18 PM Report abuse +2 rate up rate down Reply
monseigneurdev

These housing bailouts are going to support Democrats' real estate portfolios that have had the biggest run-up in prices. The amount spent to make the economy look upscale will be the most spent on a Congressional election in human history. It's no wonder there are no jobs. Wages will have to go up to pay for artificially set (bailout) prices. The Blue States will resemble Detroit because they will paint themselves into a corner where living is unaffordable. Democrat states want an ATM and a roof over their heads but eventually will be left with an incurable malaise. Neither Democrat nor Republicans have a clue. The Democrats engage in grandiose spending and the Republicans are unashamed cheerleaders for Big Oil or King Coal.

September 28 2010 at 5:04 PM Report abuse rate up rate down Reply
Hello

Ha! The Only Reason Home Prices Rose, Isn't Because they're Selling, It's Because the States Want More Taxes!! Boy They Think We're Dumb!!

September 28 2010 at 4:26 PM Report abuse +1 rate up rate down Reply