Home prices in 20 U.S. cities continued to gain at a solid pace in July, according to S&P CoreLogic Case-Shiller data released Tuesday.
Key Points
- 20-city property values index climbed 5 percent from July 2015 (forecast was for 5.1 percent), after a 5.1 percent year-over-year rise in June
- National home-price gauge increased 5.1 percent from 12 months earlier
- On a monthly basis, the seasonally adjusted 20-city gauge was little changed
Steady price appreciation is keeping the housing market on a reassuring path at the start of the second half of 2016. The residential real estate market took a breather last month, with existing-home sales unexpectedly declining in August while purchases of new properties retreated from a nine-year high. Durable job gains and borrowing costs lingering near record lows should remain a support for potential home buyers.
Economist Takeaways
"Both the housing sector and the economy continue to expand," David Blitzer, chairman of the S&P index committee, said in a statement. While some cities are seeing rapid price gains, "there is no reason to fear that another massive collapse is around the corner" because mortgage debt is rising at a relatively slow pace.
The Details
All 20 cities in the index showed year-over-year gains, led by a 12.4 percent increase in Portland, Oregon, and 11.2 percent in Seattle
New York and Washington posted the smallest 12-month advances.
After seasonal adjustment, Portland had the biggest month-over-month gain at 0.7 percent, while Chicago showed the largest decrease at 0.5 percent
Six cities showed seasonally adjusted price declines in July compared with the prior month, also including New York, Atlanta and Detroit
