BAP Blog Reported Today: Home prices up in half of major US cities

A report released today shows that home prices rose in August in half of major U.S. cities as measured by a private survey. This news is a sign that prices are stabilizing in some hard-hit portions of the country. The Standard & Poor's/Case-Shiller index is showing that home prices increased in August from July in 10 of the 20 cities it tracks. That marked the fifth straight month that at least half of the cities in the survey showed monthly gains. The report also showed that the biggest price increases were in Washington, Chicago and Detroit. The greatest declines were in Atlanta and Los Angeles. This data from August provides a modest glimmer of hope that some areas may have bottomed out and could be turning around. Also noted is that cities in the Midwest — Chicago, Detroit and Minneapolis — have shown some strength since May. Still overall home prices were flat and a recovery in the struggling housing market may not be on the horizon. Over the past 12 months, prices have fallen in all but two cities. Detroit and Washington were the only two cities to show year-over-year gains. The index, which covers half of all U.S. homes, measures prices compared with those in January 2000 and creates a three-month moving average. The August data are the latest available. It is also possible that prices may fall again once banks resume millions of foreclosures that have been delayed because of a yearlong government investigation into mortgage lending practices. Those homes that are at risk of foreclosure will most likely keep pressure on prices for some time.