United States: Home prices rise in annual terms for the first time since 2010
August 28, 2012
In June, the unadjusted S&P/Case-Shiller 20-city home price composite index increased 2.3% over the previous month. The figure mirrored the 2.3% rise registered in May and exceeded market expectations of a 1.4% increase. The figure marks the third consecutive rise in the index, in which home prices have gained an accumulated 5.9%. On an annual basis, home prices are 0.5% above the same month last year, contrasting the 0.7% annual fall recorded in May and marking, in fact, the first increase in annual terms since September 2010. 14 of the 20 cities surveyed posted gains over the same month last year. That said, despite the improvement seen in recent months, home prices still remain 31.0% below the peak reached in July 2006. According to S&P, "the market may have finally turned around" as "we seem to be witnessing exactly what we need for a sustained recovery, monthly increases coupled with improving annual rates of change".