According to an article recently completed by CNN Money, a report released by S&P and Case-Shiller on the national home price index shows that the prices of homes is increasing, but slowly. The report surveyed two separate home price indexes, and found two different facts to be true. Prices rose at a slower year-over-year pace in June alone, with nearly every city reporting lower gains. In both city indexes, prices increased by just over eight percent on an annual basis. All of these statistics are a first in the market over the course of the last six years.
Despite the relatively solid message sent by these figures, the article acknowledges that the recent housing market data has sent mixed messages. The number of new homes sold dropped in July, for the third straight month in a row. However, alternatively, existing home sales in the same month increased to annual rate to over five million units; this figure is the highest seen in the market since 2014. Likewise, starts in housing projects, building and sentiment towards the market have also all been positive. According to David Blitzer, a spokesman for S&P, together all of these factors indicate a normal housing sector. Despite this, the prices continue to rise.
Specifically, the report found several cities to be successful or lacking in their gains from the housing market. Las Vegas recorded the largest year-over-year increase of any city housing market in June, with over fifteen percent gains. In addition to Las Vegas, San Francisco, Miami and San Diego also reported strong gains. Alternatively, Cleveland prices were very nearly flat, whereas in the larger index, actual increases were experienced in Charlotte, North Carolina, New York and Washington.