The yearly growth in home prices across the US continues to slow this year, according to a home price report released Tuesday.
The home price index covering the entire nation increased 6.2 per cent in the 12 months ended in June, said the S&P/Case-Shiller Home Price Index report. In the past the national index was published quarterly but the report noted it will now be released monthly.
The home price index covering 10 major US cities increased 8.1 per cent in the year ended in June, and the 20-city price index was also up 8.1 per cent. That pace is down from a 9.4 per cent yearly rate in May but close to the 8.2 per cent expected by economists surveyed by The Wall Street Journal.
On an unadjusted basis, the national index increased 0.9 per cent in June over May, while the 10-city index and the 20-city composite each increased 1.0 per cent. Seasonally adjusted, the US index fell 0.1 per cent in June, the 10-city gauge slipped 0.1 per cent and the 20-city composite was down 0.2 per cent.
"For the first time since February 2008, all cities showed lower annual rates than the previous month," David Blitzer, chairman of the Index Committee at S&P Dow Jones Indices, said. "Other housing indicators -- starts, existing home sales and builders' sentiment -- are positive. Taken together, these point to a more normal housing sector."
However, Mr Blitzer was cautious about the future.
"Bargain basement mortgage rates won't continue forever," he said, "recent improvements in the labour markets and comments from [Federal Reserve chair] Janet Yellen and others hint that interest rates could rise as soon as the first quarter of 2015. Rising mortgage rates won't send housing into a tailspin, but will further dampen price gains."
Regionally, the south and west are seeing home price slowdowns.
"In San Francisco, the pace of price increases halved since late last summer," the report said, "The Sun Belt cities -- Las Vegas, Phoenix, Miami and Tampa -- all remain a third or more below their peak prices set almost a decade ago."
US home price index increased 6.2% in 12 months to June, broadly in line with expectations.
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