Please ensure Javascript is enabled for purposes of website accessibility

Home Price Growth Cools for July

By Justin Loiseau - Sep 24, 2013 at 2:29PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Year-over-year jump for July is largest since 2006.

Home prices keep heading higher, but at a slower rate, according to a July S&P/Case-Shiller Home Price Index report (link opens as PDF) released today. 

After jumping up 0.9% for June, the index's seasonally adjusted 20-city home price composite showed slightly slower growth for July at 0.6%. Analysts were disappointed by the news, having set their sights higher at 0.8% growth. 

All 20 cities analyzed in the index showed monthly gains for the fourth straight month in a row, although 15 cities registered slower growth for July than in June. 

"Home prices gains are holding their 12% annual rate of gain established by the two Composite indices in April," noted David Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices, in a statement today. "The Southwest continues to lead the housing recovery. Las Vegas home prices are up 27.5% year-over-year; in California, San Francisco, Los Angeles and San Diego are up 24.8%, 20.8% and 20.4% respectively. However, all remain far below their peak level."

Blitzer also stated that rising mortgage rates seem to be adversely affecting the housing market. Looking ahead, the Chairman noted that although the Fed's announcement last week that it will continue to buy bonds should boost the housing market, its overall effects will be "limited."

Year-over-year, U.S. home prices were up 12.4% in July compared with July 2012 in the 20-city index, the largest YOY increase sine February 2006. Since bottoming out in March 2012, home prices have rebounded about 21%. They remain about 22% below the peak reached in July 2006.

-- Material from The Associated Press was used in this report.

link

Fool contributor Justin Loiseau has no position in any stocks mentioned. You can follow him on Twitter @TMFJLo and on Motley Fool CAPS @TMFJLo.

The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
377%
 
S&P 500 Returns
123%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/08/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.