海角大神

Home prices rise in 20 major cities as housing market climbs back

Home prices rose across the United States in July, buoyed by better sales and fewer foreclosures. Though home prices are still well below their 2006 peak, it's a positive sign of further recovery for the housing market.

Home聽prices聽kept rising in July across the United States, buoyed by greater sales and fewer foreclosures.

National聽home聽prices聽increased 1.2 percent in July, compared to the same month last year, according to the Standard & Poor's/Case Shiller index released Tuesday. That's the second straight year-over-year gain after two years without one.

The report also says聽prices聽rose in July from June in all 20 cities tracked by the index. That's the third straight month in which聽prices聽rose in every city.

Steady聽price聽increases and record-low mortgage rates are helping drive a housing recovery.

In the 12 months ending in July,聽prices聽have risen in 16 of 20 cities. In Phoenix, one of the cities hardest hit by the housing bust,聽prices聽are up 16.6 percent in that stretch.聽Prices聽in Minneapolis and Detroit have risen more than 6 percent.

"We are more optimistic about housing," David Blitzer, chairman of the S&P's index committee. "Stronger housing numbers are a positive factor for other measures, including consumer confidence."

Prices聽fell from a year earlier in Atlanta, Chicago, New York and Las Vegas.

The S&P/Case-Shiller index covers roughly half of U.S.聽homes. It measures聽prices聽compared with those in January 2000 and creates a three-month moving average. The July figures are the latest available.

Home聽prices聽are still 30 percent below their peak in June 2006, according to Case-Shiller. That was the height of the housing boom.

Other measures of聽home聽prices聽are also showing steady gains. CoreLogic, a private real estate data provider, said earlier this month that聽prices聽rose in July from a year earlier by the most in six years. And a federal government housing agency has also reported annual increases.

Rising聽home聽prices聽are one of many signs that the housing market is slowly recovering.

Sales of previously occupied聽homes聽jumped in August to the highest level since May 2010. Builder confidence is at a six-year high and construction of single-family聽homes聽rose last month to the fastest annual rate in more than two years. Even with the gains,聽home聽sales and construction remain well below healthy levels.

The broader economy is likely to benefit from rising聽home聽prices. When聽home聽prices聽rise, people typically feel wealthier and spend more. And more Americans are likely to put their houses up for sale, which could further energize the market.

Home聽sales have been bolstered by the lowest mortgage rates on record. The average rate on the 30-year fixed mortgage touched a record low of 3.49 percent last week and has been below 4 percent all year. A limited supply of聽homes聽has also helped drive聽prices聽higher.

Prices聽are also rising because of a decline in foreclosures and sales of other deeply discounted聽homes. Manyhomes聽in the foreclosure process will likely come on the market in the coming months, which could drag onprices.

Still, many Americans, particularly first-time homebuyers, are unable to qualify for a mortgage or can't afford larger down payments required by banks. That's holding back sales.

Home聽sales could get a further boost from the Federal Reserve. The Fed said two weeks ago that it would purchase $40 billion of mortgage-backed securities each month until the economy and hiring improve substantially. That's likely to keep mortgage rates at record-low rates for some time.