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Home Prices Up 0.6% in July 2010

October 15, 2010 by Samuel Chong

Los Angeles, CA - According to the Case-Shiller index, 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 index rose 0.6% in July compared to 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.

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.

Prices rose in 12 of the 20 metropolitan areas tracked by Case-Shiller in July compared to 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.

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%.



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