Home Prices Rose in 20 Major U.S. Cities in July

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PhoenixBy CHRISTOPHER S. RUGABER

WASHINGTON -- Home prices kept rising in July across the United States, buoyed by greater sales and fewer foreclosures.

National home prices increased 1.2 percent in July, compared to the same month last year, according to the Standard & Poor's/Case Shiller index released Tuesday. That's the second straight year-over-year gain after two years without one.

The report also says prices rose in July from June in all 20 cities tracked by the index. That's the third straight month in which prices rose in every city.

Steady price increases and record-low mortgage rates are helping drive a housing recovery.

Prices in the Phoenix, one of the cities hardest hit by the housing bust, have increased 16.6 percent in the 12 months ending in July. Prices in Minneapolis and Detroit have risen more than 6 percent.

"We are more optimistic about housing," David Blitzer, chairman of the S&P's index committee. "Stronger housing numbers are a positive factor for other measures, including consumer confidence."

The S&P/Case-Shiller index covers roughly half of U.S. homes. It measures prices compared with those in January 2000 and creates a three-month moving average. The July figures are the latest available.

Other measures of home prices are showing steady gains. CoreLogic, a private real estate data provider, said earlier this month that prices rose in July from a year earlier by the most in six years. And a federal government housing agency has also reported annual increases.

Rising home prices are one of many signs that the housing market is slowly recovering.

Sales of previously occupied homes jumped in August to the highest level since May 2010. Builder confidence is at a six-year high and construction of single-family homes rose last month to the fastest annual rate in more than two years. Even with the gains, home sales and construction remain well below healthy levels.

Still, the broader economy is likely to benefit from rising home prices. When home prices rise, people typically feel wealthier and spend more. And more Americans are likely to put their houses up for sale, which could further energize the market.

Home sales have been bolstered by the lowest mortgage rates on record. The average rate on the 30-year fixed mortgage touched a record low of 3.49 percent last week and has been below 4 percent all year. A limited supply of homes has also helped drive prices higher.

Home prices are still 30 percent below their peak in June 2006, according to Case-Shiller. That was the height of the housing boom.

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17 Comments

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pdbliz

ALL OF AMERICA IS ON FALSE NUMBERS,,,,,,,AMERICA IS ,,,,STONE BROKE,,,,,,,,PAPER MONEY HAS NO VALUE,,,,,,,,,,,,,,,,AMERICA ,,,IF CHINA WANTS TO CALL DEBT,,,,WILL BE TAKEN OVER TOMORROW BY CHINA.....
PEOPLE,,,,WAKE UP,,,,AMERICA HAS NO REAL MONEY,,,,ONLY LIES,!!!!!!!!!!!!

September 25 2012 at 10:21 PM Report abuse -1 rate up rate down Reply
1 reply to pdbliz's comment
lawmutt55

"America ...If China wants to call debt" China has used some of its surplus dollars gathered through its trade imbalance with the US to buy our debt instruments - treasury notes, bills and bonds. China may convert these debt instruments intodollars by selling them on the open market. At worse, the result would be an increase in interest rates necessary for buyers to purchase them.

September 26 2012 at 1:42 AM Report abuse rate up rate down Reply
kafienkarl

Housing prices rising should be a good thing for everyone. It does show alittle suppy and demand economics. It also shows people are getting back in the market even if some of them are investors. Many of us realize recovery is slowly happening.

September 25 2012 at 10:10 PM Report abuse +1 rate up rate down Reply
jj2301

Ayuh.. That's why I got hit for an additional $20K when the appraiser lowered the price on my home *after* I had a signed contract that I was *already* losing money on. Closing date: 25 July, 2012.

Price increase, my eye!

September 25 2012 at 5:48 PM Report abuse rate up rate down Reply
jj2301

Ayuh.. That's why I got hit for an additional $20K when the appraiser lowered the price on my home *after* I had a signed contract that I was *already* losing money on. Closing date: 25 July, 2012.

Price increase, my eye!

September 25 2012 at 5:47 PM Report abuse rate up rate down Reply
tmoschetti

"Home Prices Rose in 20 Major U.S. Cities in July"

Along with energy prices, food prices, and almost everything else except our pay! How many times a month do we buy houses!

September 25 2012 at 3:47 PM Report abuse +2 rate up rate down Reply
s.kohanski

Cool, now put the damn country back to work so they can buy one !

September 25 2012 at 2:16 PM Report abuse rate up rate down Reply
chainsawd2

This is great news for the Romney middle class, (200k-250K), now they can put their 750K homes up for sale.

As for the rest of us 40-50K real middle class, we can't afford the houses we have now because our salaries have gone done over the 5 years.

Great news - just not for most.

September 25 2012 at 1:33 PM Report abuse -3 rate up rate down Reply
3 replies to chainsawd2's comment
howardggodfrey

HAHAHAHAHA

September 25 2012 at 1:18 PM Report abuse rate up rate down Reply
Jetncat

The entire economy is on a sugar high of printing and borrowing that the Feds are doing. this can not go on forever and when it does just like a sugar high the entire thing is going to come crashing down!

September 25 2012 at 12:45 PM Report abuse +2 rate up rate down Reply
abcborderline1

We bought a second home in Phoenix last. Spring. Recently checking prices for the area it looks like we have had about 10% gain. However, prices are still lower than five years ago. I would like to buy 1or2 more properties.

September 25 2012 at 12:11 PM Report abuse rate up rate down Reply