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S&P: Housing Prices Continue to Rise in July
Thursday, September 29, 2016 6:45 AM

The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index gained 5.1 percent from the previous year in July and was up 5.0 percent from June.

"Both the housing sector and the economy continue to expand with home prices continuing to rise at about a five-percent annual rate," David Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices, said in a release.

"The statement issued last week by the Fed ... confirms the central bank's view that the economy will see further gains," he continued, noting that even though most analysts expect the Fed to raise interest rates in December, that would not be a "major negative" for housing prices as mortgage rates would remain at historically low levels.

According to Blitzer, the index is within 0.6 percent of the record high set in July 2006, and while this pace is not sustainable over the long term, because mortgage debt remains 12.6 percent below the peak seen in 2008, "there is no reason to fear that another massive collapse is around the corner."

The 10-city composite reported a 4.2 percent annual increase, down from 4.3 percent the previous month, while the 20-city composite reported a 5.0 percent year-over-year gain, down from 5.1 percent in June. Portland, OR; Seattle; and Denver reported the highest year-over-year gains, with nine cities overall reporting higher prices for the year ending in July versus the year ending in June.

On a month-over-month basis, the national index rose 0.4 percent in July, after seasonal adjustment, while the 10-city composite saw a 0.1 percent decrease, and the 20-city composite remained unchanged. Before seasonal adjustment, all three indexes saw month-over-month increases, with the national index gaining 0.7 percent, the 10-city composite posting a 0.5 percent increase and the 20-city composite gaining 0.6 percent.