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Home Price Gains Slow More Than Expected

ups-and-downs-graphHome price appreciation decelerated further in August, with some of the once-hottest cities of the recovery now showing monthly declines on one of the country's most close-watched indices.

On a monthly basis, the S&P Case-Shiller National Index showed a non-seasonally adjusted 0.2 percent increase from July to August, down from a 0.6 percent improvement in the July report. The narrower 10- and 20-city indices posted the same results, ticking up 0.2 percent each.

Adding in seasonal adjustments, the picture for August is mixed: The National Index climbed 0.4 percent compared to July's 0.1 percent gain, while the 10- and 20-city measures lost ground, falling 0.2 percent and 0.1 percent, respectively.

Economists had forecast that the adjusted 20-city index would bump up 0.1 percent, while the non-adjusted index was expected to rise 0.4 percent.

Out of the cities tracked in the 20-market survey, Detroit led in gains, posting a 0.8 percent increase to match July's pickup. At the bottom was San Francisco, which had its largest decline since February 2012 at -0.4 percent.

With the exceptions of Detroit and Boston, all of the markets in the 20-city tracker showed lower monthly returns in August than in July. Three cities—San Francisco, San Diego, and Charlotte—reported depreciation.

Annually, all three indices posted weaker results compared to July, with growth in the National Index declining from 5.6 percent to 5.1 percent. The 10- and 20-city composites gained 5.5 percent and 5.6 percent, respectively.

Despite the continuing slowdown, "home prices are still showing an overall increase, as the National Index increased for its eighth consecutive month," S&P Dow Jones Indices said.

As of August, average home prices across the country are back to their levels in spring 2005.

All cities in the 20-city index posted annual appreciation, though 19 of them saw lower growth than in July. Las Vegas experienced the sharpest decline, with yearly growth dropping from 12.8 percent in July to 10.1 percent in August. The drop moved the city into second place for yearly growth, putting it just under Miami, which saw a 10.5 percent improvement.

San Francisco, which has reported double-digit annual increases every month since November 2012, finally dropped into the single-digit range, with prices coming up 9.0 percent over the year.

About Author: Tory Barringer

Tory Barringer began his journalism career in early 2011, working as a writer for the University of Texas at Arlington's student newspaper before joining the DS News team in 2012. In addition to contributing to DSNews.com, he is also the online editor for DS News' sister publication, MReport, which focuses on mortgage banking news.
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