U.S. Home Prices Stall in July

Leading measures released Tuesday show home price growth suffered a setback in July, falling month to month on a seasonally adjusted basis and slowing significantly on an annual scale.

Including seasonal factors, the S&P/Case-Shiller 10- and 20-city indices both posted a 0.5 percent decline from June to July, S&P Dow Jones Indices reported. Those losses compare to declines of 0.2 percent and 0.3 percent, respectively, from May to June.

The National Index, recently added as a monthly (rather than quarterly) measure, inched up a meager 0.2 percent, a step up from its 0.1 percent drop in June.

Removing seasonal adjustments, each index increased over the month, though growth was nearly halved compared to June. According to S&P Dow Jones, the 10- and 20-city composites each increased 0.6 percent (following an even 1.0 percent in June), while the National Index was up 0.5 percent (compared to 0.9 percent).

"The broad-based deceleration in home prices continued in the most recent data," said David M. Blitzer, chairman of the Index Committee at S&P Dow Jones Indices, adding that prices are still rising at double or triple the rate of inflation. "The slower pace of home price appreciation is consistent with most of the other housing data on housing starts and home sales. The rise in August new home sales ... is a welcome exception to recent trends."

Out of all the markets included in the 20-city index, 19 posted month-to-month appreciation, though 17 of those saw smaller increases than in June. Only San Francisco reported a decline, with prices dropping 0.4 percent—its largest decrease since February 2012.

On an annual basis, the 10- and 20-market composites each experienced 6.7 percent price appreciation, according to S&P Dow Jones Indices, stepping back from June's 8.1 percent increase. The National Index was up 5.6 percent, also slower than June.

Though all of the 20 cities tracked posted positive movement on an annual basis, 19 saw lower annual returns than in June. Cleveland was the one market where growth remained steady at 0.9 percent, putting it behind all of the other metros.