New York, NY, United States (4E) – Home prices in the U.S. continued its rise in July, though at a slower pace from the previous month, according to Tuesday’s report by the Standard & Poor’s/Case-Shiller.
The S&P/Case-Shiller property value index of the 20 major cities in the country climbed 12.4 percent in July from the previous year, which is in line with 31 economists’ median estimate in a Bloomberg News survey and the widest year-to-year increase since February 2006, the group said in their report released in New York. Value appreciation came at a slower pace on a month-to-month basis.
Nonseasonally adjusted, the 20-city index advanced 1.8 percent in July from the previous month, while two other 10-city indexes rose 1.9 percent. On a seasonally adjusted basis, the 20-city index climbed 0.6 percent and the 10-city gauge rose 0.7 percent.
Rising home and stock values are helping improve household wealth that is boosting consumer spending, which accounts for the biggest part of the economy. However, property values are expected to cool over the remainder of the year as two-year high mortgage rates slow down demand.
Another gauge for home values also showed improvement in the sector. Values increased 1 percent in July from June that registered a 0.7 percent increase, according to data from the Federal Housing Finance Agency.
All 20 cities tracked in the index tallied an increase in home values year-over-year, led by Las Vegas that saw a 27.5 percent increase. Other cities that recorded at least 20 percent gains include Los Angeles, San Francisco and San Diego.