There was a significant slowdown in U.S. home price increases in July, according to the S&P/Case-Shiller Home Price Indices (PDF file).
Nineteen of the 20 cities in the 20-City Composites saw lower annual returns in July. Nonetheless, the 10-City and 20-City Composites increased 0.6 percent and the National Index increased 0.5 percent. Annually, the Composites posted gains of 6.7 percent, and the National Index recorded a 5.6 percent gain.
“The broad-based deceleration in home prices continued in the most recent data,” said David M. Blitzer, chairman of the Index Committee at S&P Dow Jones Indices, in a statement. “However, home prices continue to rise at two to three times the rate of inflation. The slower pace of home price appreciation is consistent with most of the other housing data on housing starts and home sales. The rise in August new home sales—which are not covered by the S&P/Case-Shiller indices—is a welcome exception to recent trends.”
The Indices also showed that average home prices across the country are back to their autumn 2004 levels. Measured from their June/July 2006 peaks, the peak-to-current-decline for both Composites is 16–17 percent.
