Home prices rose for the third consecutive month across all major metropolitan areas. Learn more.
Home prices continue to rise across the United States, according to two reports released today that adds to growing evidence of a housing market recovery.
Home prices increased 1.6 percent in the nation’s 20 biggest metropolitan markets for the month of July, the third consecutive month of gains across all regions, according to the S&P/Case-Shiller Home Price Index. Year-over-year home prices have increased an average of 1.2 percent in the 20 biggest cities.
“The news on home prices in this report confirm recent good news about housing,” David M. Blitzer, chairman on the Index Committee at S&P Dow Jones Indices, said in a statement. “Single family housing starts are well ahead of last year’s pace, existing home sales are up, the inventory of homes for sale is down and foreclosure activity is slowing. All in all, we are more optimistic about housing.”
The Federal Housing Finance Agency today reported a 0.2 percent gain from June to July in its monthly Home Price Index. Over the 12 months ending in July, U.S. home prices have increased 3.7 percent, but remain 16.4 percent below the peak reached in April 2007, according to the agency, which says U.S. home prices are now roughly equivalent to levels last seen in June 2004.
The FHFA Home Price Index reflects the prices of houses with mortgages owned or guaranteed by Fannie Mae or Freddie Mac, entities created by Congress to provide money to mortgage lenders. In comparison, the Case-Shiller Home Price Index tracks the value of single-family housing within the United States.
Many regional markets have made a “decent recovery” from the lows that followed the housing market crash of 2006, according Blitzer, of S&P Dow Jones Indices. San Francisco home prices are up 20.4 percent, while the Detroit market has recovered 19.7 percent, Phoenix, 17 percent, and Minneapolis, 16.5 percent. The S&P/Case-Shiller Home Price Index reports home prices across the 20 major metropolitan areas are back to summer of 2003 levels.
“The positive news in both the monthly and annual rates of change in home prices over the past few months signals a possible recovery in the housing market,” Blitzer said.