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Home price growth slows in July...Twenty-city Case-Shiller index reveals price pickup of 0.6%

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Real Estate Agent with Re/Max 100

Home price growth slows in July...Twenty-city Case-Shiller index reveals price pickup of 0.6%

Home price growth in 20 major U.S. cities slowed in July, showing that both transactions and prices have been impacted by the expiration of a key tax credit.

The Case-Shiller index rose 0.6% in July compared with June in 20 major U.S. cities, according to the index released Tuesday by Standard & Poor's. Prices have moved up 3.2% in the past year, while June's advantage over June 2009 was 4.2%. The data are not seasonally adjusted.

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Some other home prices indexes have already turned negative, and the Case-Shiller could also move lower in coming months, economists said.

Demir Gjokaj, real estate analyst with Majestic Research, said that prices are under pressure because more homes are being listed for sale while less are being sold. He predicted that home prices will be negative on a year-on-year basis by September or October.

"The market is jamming up... at the top-end as well as the bottom," Gjokaj said in an interview.

Demand for homes has plunged since a federal tax break for buyers ended, and foreclosures continue.

Stocks /quotes/comstock/10w!i:dji/delayed (DJIA 10,747, -64.63, -0.60%)  were lower Tuesday hit by a slump in consumer confidence in September. Confidence fell to its lowest level since February, according to the Conference Board.

 

 

Prices rose in 12 of the 20 metropolitan areas tracked by Case-Shiller in July compared with June, but the monthly rates seem to be weakening, said David Blitzer, chairman of the S&P Index Committee.

"The year-over-year growth rates for 16 of the cities ... weakened in July compared to June," Blitzer said. "The next few months may give us an idea of the true strength of the housing market."

The Case-Shiller index is based on repeat sales of the same properties Read the full report.

In the month of July, the home price increase was led by a 1.3% rise in Detroit. Prices also rose 1.3% in New York and 1.1% in Washington.

In the past year, prices were negative in 10 of 20 cities. This is up from 5 cities in June.

The decline was led by a 4.9% drop in Las Vegas.

Here's a list of the 20 cities in the Case-Shiller index, with percentage changes over the past year:

San Francisco, up 11.2%; San Diego, up 9.3%; Los Angeles, up 7.5%; Washington, up 6.5%; Minneapolis, up 6.4%; Phoenix, up 3.4%; Boston, up 2.8%; Detroit, up 1.3%; New York, up 0.6%; Miami, up 0.4%; Denver, down 0.1%; Atlanta, down 0.2%; Dallas, down 0.4%; Cleveland, down 0.6%; Portland, down 1.2%; Seattle, down 1.6%; Chicago, down 1.7%; Tampa, down 3.2%; Charlotte, down 3.5%; and Las Vegas, down 4.9%.

 

 

 

 

Greg Robb is a senior reporter for MarketWatch in Washington.

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Regards,  

Indera Coggins(R)
Certified Distressed Property Expert
301-481-0787 (cell)
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inderac@gmail.com
www.inderacoggins.com 

Comments (2)

John Cunningham
eXp Realty - Phoenix, AZ
Helping Phoenix Sellers and Buyers find each other

recovery or moving toward double dip?

Sep 28, 2010 03:17 AM
Indera Coggins
Re/Max 100 - Dunkirk, MD

Well, it's mixed emotion out there. I am going to take the optimistic route and say, recovery!

Sep 28, 2010 03:32 AM