US house prices slipped in July in a sign that the residential real estate market continues to face challenging headwinds.
Prices in the biggest US cities fell by a seasonally adjusted 0.1 per cent from June to July, according to the S&P/Case-Shiller home price index. That was in line with Wall Street analysts’ predictions and left house prices up 3.2 per cent from the same month a year ago.
The figures show that home price growth on an annual basis is decelerating as the effects of government stimulus measures to support the market fade.
Going forward, expect continued pressure on the index.
Case-Shiller’s index uses a three-month moving average, so the impact of the first-time homebuyer tax credit was still reflected in the data. Without seasonal adjustments, prices ticked up by 0.6 per cent from June to July.Source: S&P