Home prices across the country increased again in July 2015, according to S&P/Case-Shiller Home Price Indices.
The index, which covers all nine U.S. census divisions, showed July 2015 home prices rose 4.7 percent year-over-year compared to a 4.5 percent increase recorded the prior month.
The 10-City Composite was mostly unchanged from last month, experiencing a 4.5 percent increase year-over-year, while the 20-City Composite gained 5.0 percent.
The cities with the highest year-over-year gains were San Francisco (10.4 percent), Denver (10.3 percent), and Dallas (8.7 percent), the report said. Meanwhile, 14 cities reported greater price increases in the year ending July 2015 over the previous year.
On a month-over-month basis, home prices increased 0.7 percent in July before seasonal adjustment, the index determined. Both the 10-City and 20-City Composite posted 0.6 percent gains.
“Prices of existing homes and housing overall are seeing strong growth and contributing to recent solid growth for the economy,” said David M. Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices.
Much of the strength in home prices was seen in Western states, Blitzer noted. Los Angeles, San Francisco, and San Diego all have the largest cumulative price increases since January 2000 at 138 percent, 116 percent, and 115 percent, respectively. On the other hand, Detroit (3 percent) and Cleveland (10 percent) posted the smallest gains since 2o00.
Blitzer also explained that the index has risen 4 percent annually for the last three years, well ahead of inflation. In addition, residential investment and spending on furniture and household equipment have also surpassed economic growth.
"An interest rate increase by the Federal Reserve, now expected in December by many analysts, is not likely to derail the strong housing performance," Blitzer concluded.
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