Home prices in 20 U.S. cities continued to moderate in June, according to S&P CoreLogic Case-Shiller data released Tuesday.
- 20-city property values index increased 5.1 percent from June 2015, matching the median forecast and the smallest gain since August, after a 5.3 percent year-over-year advance in May
- National home-price gauge also rose 5.1 percent from 12 months earlier
- On a monthly basis, the seasonally adjusted 20-city gauge fell 0.1 percent for a second month
The report shows more gradual price appreciation that’s allowing the housing market to strengthen. New-home sales unexpectedly surged in July to the strongest level in more than nine years. At the same time, consistent appreciation might convince more sellers to put their homes on the market, and cheap borrowing costs and solid labor-market gains are supporting potential buyers.
“Overall, residential real estate and housing is in good shape,” David Blitzer, chairman of the S&P index committee, said in a statement. “While the real estate sector and consumer spending are contributing to economic growth, business capital spending continues to show weakness.”
- All 20 cities in the index showed a year-over-year gain, led by a 12.6 percent advance in Portland, Oregon
- New York and Washington posted the smallest 12-month advances
- After seasonal adjustment, Portland had the biggest month-over-month increase at 0.7 percent, while Atlanta and Chicago showed the largest declines at 0.6 percent
- Nine showed seasonally adjusted price decreases in June over the prior month, including New York, Detroit and Cleveland