U.S. Home Prices Increase, Less Than Predicted

A survey on Tuesday showed that U.S. single-family home prices in July rose somewhat less than anticipated on an annual basis, and the year-over-year gain was lesser than in the previous month.

The S&P CoreLogic Case-Shiller composite index of 20 metropolitan areas rose 5 percent in July on a year-over-year basis, decreasing from the 5.1 percent hike in June and failing to meet the estimate calling for a 5.1 percent increase from a Reuters poll of economists.

David M. Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices said: “Both the housing sector and the economy continue to expand with home prices continuing to rise at about a 5 per cent annual rate.”

“There is no reason to fear that another massive collapse is around the corner.”

Matching expectations, the survey revealed that prices in the 20 cities were flat from June to July on a seasonally adjusted basis.

On a non-seasonally adjusted basis, prices climbed 0.6 percent from June.

The survey also showed that home prices three U.S. cities- Denver, Seattle and Portland, Oregon- had the highest year-over-year gains.