by Christopher Freeburn | August 28, 2012 1:05 pm
The S&P/Case Shiller index, released on Tuesday, showed that home prices increased in June. That marked the fifth straight month-over-month rise in prices and suggested that the real estate market continues to make a slow, but steady recovery.
Home prices in 20 major cities increased a 0.5% in June, compared to last year, according to the index.
Economists had expected prices to decline by 0.05% in those markets, Bloomberg noted.
June’s increase marked the first year-over-year increase in nearly two years.
Prices in Phoenix increased 14% over last year, while prices in Atlanta dropped 12.1% compared to 2011.
In May, the S&P/Case Shiller 20-city index showed a 0.7% drop in home prices compared to last year.
Adjusting for seasonal fluctuations, home prices in the 20 cities rose 0.9% compared to May. Without the adjustment, June home prices increased 2.3% over the prior month.
Home prices across the U.S. rose 1.2% during the second quarter, compared to last year, reversing a 1.4% year-over-year decline in the first quarter.
Analysts noted that rising home prices signaled that the real estate market recovery was spreading to even states hit hardest by the housing downturn.
Shares of home-builders Ryland Group (NYSE:RYL), D.R. Horton (NYSE:DHI) and Toll Brothers (NYSE:TOL) rose fractionally in Tuesday afternoon trading.
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