U.S. home prices accelerate in July despite real term declines

U.S. home price growth accelerated in July, according to data from the Federal Housing Finance Agency (FHFA) and S&P Dow Jones Indices. The FHFA’s seasonally adjusted House Price Index rose 0.3% from June and 2.6% annually, up from a 2.3% annual rate in June.

The S&P CoreLogic Case-Shiller U.S. National Home Price Index also showed strength, increasing 0.3% from June and rising 1.9% annually, compared to a 1.6% increase in June. The Case-Shiller index for the 20 largest cities exceeded market expectations, growing 2.5% annually.

Despite the rise in nominal prices, home values continued to decline in real terms for the 14th consecutive month as growth failed to outpace inflation. In July, consumer prices were 3.4% higher than a year earlier. Regional performance varied significantly; Chicago saw the highest annual increase at 6.9%, followed by New York at 5.8% and Cleveland at 4.2%. Seattle was the only major city in the 20-city index to record a decline, falling 1.6% annually.