Getty Images/iStockphoto Beautifully restored old craftsman style home.
The numbers: The S&P/Case-Shiller national index rose a seasonally adjusted 0.2% and was up 6.0% for the year in July. The 20-city index rose 0.1%, seasonally adjusted, and was up 5.9% compared with a year ago.
What happened: Home-price gains were weaker in the three-month period ending in July than in the prior month. The national index had increased 6.2% in June, and the 20-city index had notched a 6.4% gain last month. It was the slowest pace of growth since last summer.
In July, Las Vegas was the number-one metro area yet again, with a 13.7% annual increase. It was followed by Seattle, at 12.1%, and San Francisco, at 10.8%. Only five cities had stronger price gains in July versus in June.
Read: Buyers are ‘fatigued,’ ‘burned out,’ but kept house-hunting even in August, real-estate agents say
Big picture: “Rising home prices are beginning to catch up with housing,” said David Blitzer, who chairs the committee that compiles the closely-watched price indexes. If would-be buyers balk at sky-high prices and stay away, prices should reflect that. The question now is whether this slight dip will lure more buyers back.
Metro Monthly change 12-month change Atlanta 0.5% 5.8 % Boston 0.1% 6.0% Charlotte 0.1% 5.6 % Chicago 0.3% 3.0% Cleveland 1.4% 5.7 % Dallas 0.2% 5.0% Denver 0.3% 8.0% Detroit 0.4% 6.2% Las Vegas 1.4% 13.7% Los Angeles 0.1% 6.4% Miami 0.4% 5.0% Minneapolis 0.4% 6.0% New York 0.1% 3.4% Phoenix 0.7% 7.5% Portland 0.5% 5.6% San Diego 0.0% 6.2% San Francisco 0.6% 10.8% Seattle 0.0% 12.1% Tampa 0.6% 6.8% Washington 0.2% 2.7%
What they’re saying: “Amidst homebuyers’ budget constraints and slight improvements in supply levels, home prices grew at a slower pace last quarter,” economists at mortgage financier Freddie Mac said Monday, before the Case-Shiller release. “For the year, we anticipate that home prices will increase 5.5%, with the growth rate moderating to 4.5% in 2019.”
Market reaction: The benchmark 10-year U.S. Treasury note TMUBMUSD10Y, +0.33% , which mortgage rates often follow, has jumped in recent weeks as investors grow more certain that a Federal Reserve interest rate increase is in the cards.
Also see: Missing millennial homeownership endangers the American Dream
