WASHINGTON (MarketWatch) - U.S. home prices rose in July for the fourth
straight month to reach their highest level in nearly two years,
according to an index released Tuesday. The S&P/Case-Shiller 20-city
composite posted a 1.6% increase in July in the wake of a 2.3% advance
in June. And home prices are now up 1.2% compared to one year earlier.
For the third month in a row, all 20 cities in the index recorded prices
increases. The rise in home prices reflects increasing demand for new
and pre-owned homes following the real-estate market's worse slump in
modern times. "The news on home prices in this report confirm recent
good news about housing. 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," said David M.
Blitzer, chairman of the index committee at S&P Dow Jones Indices.
"All in all, we are more optimistic about housing." Despite the recent
increase in prices, homes still sell for about 30% less compared to the
market's 2006 peak.
By
Jeffry Bartash
