Rise in home prices falls short of expectations

S&P/Case Shiller home index showed that prices fell month-over-month by 0.5 percent

While single-family home prices rose in July compared to a year earlier, the increase wasn’t as high as expected, according to the S&P/Case Shiller home price index of 20 metropolitan areas.

Year over year, home prices rose 6.7 percent, according to Tuesday’s survey. Prices fell month over month with 0.5 percent in July. A Reuters poll had predicted that the rate would be flat.

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In June, home prices fell 0.2 percent month-over-month. Compared to June 2013, home prices rose 8.1 percent, which was a 17-month low.

“The broad-based deceleration in home prices continued in the most recent data,” David Blitzer, chairman of the index committee at S&P Dow Jones Indices, said in a statement. “While the year-over-year figures are trending downward, home prices are still rising month-to-month although at a slower rate than what we are used to seeing over the past couple of years.” [Reuters] — Claire Moses