The S&P Cotality Case-Shiller U.S. National Home Price Index posted a 1.9% annual gain in July, up from 1.6% in June, according to S&P Dow Jones Indices. Even so, U.S. home values fell in real terms for the 14th consecutive month, with inflation at 3.4%, roughly 1.5 percentage points ahead of home price growth.
Chicago topped the 20-city index for the fifth straight month with a 6.9% annual increase, followed by New York (5.8%) and Cleveland (4.2%). Seattle posted the weakest reading (-1.6%), with Las Vegas (-1.3%) and Denver (-1.1%) close behind. Six of eight Eastern metros saw stronger year-over-year growth in July than in June, compared with just two of eight Western metros.
Energy drove July’s inflation, with gasoline prices up 24.6%, while core inflation rose 2.5%. “This distinction is important because persistent inflation in shelter and other core categories tends to have a more direct impact on housing affordability than energy-driven price fluctuations,” said Rebecca Kaufman, associate director of commodities at S&P Dow Jones Indices.
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