Home Prices Rise . . . and Fall in July

U.S. home prices rose for a fourth consecutive month in July but remain down from last year, according to S& P Case-Shiller home-price indexes, as the housing market continues to struggle.  Home prices rose in July from June in 17 of the 20 major U.S. metropolitan markets led by 3.8% growth in Detroit.  However, with the exception of Detroit and Washington, prices were down year-to-year.  The housing market has been struggling due to high unemployment, foreclosures and tighter mortgage requirements.  Home prices rose in April for the first time in eight months, though most of the improvement was believed to reflect the beginning of the spring-summer home-buying season.  Foreclosure sales and “short sales,” where lenders allow homeowners to sell houses for less than the value of existing loans and forgive the difference, accounted for 31% of sales.

Wall Street Journal  September 28, 2011