Home Price Increases Continue To Shrink

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Home prices are still increasing in most metropolitan areas across the country but, according to the most recent S&P/Case-Shiller Home Price Indices, the size of those increases continues to shrink. In July, for example, all but one of the cities included in their 20-city composite index increased from the previous month but 17 of those cities saw smaller increases than they did the month before. Year-over-year price gains also slowed, with 19 of the 20 cities reporting lower annual returns in July. David M. Blitzer, chairman of the index committee at S&P Dow Jones Indices, said the most recent data shows the broad-based deceleration in home prices has continued. According to Blitzer, though home prices are still rising month-to-month, they’re increasing at a slower rate than what has been seen over the past couple years. The slowdown represents a normalizing of the market, following the sharp gains seen following the recession and financial crisis. After surging back from post-recession lows, home prices have been increasing at an ever-slower pace, improving affordability conditions and balancing housing markets across the country. More here.

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