WASHINGTON — U.S. home prices rose at a solid pace in July, as would-be buyers competed for a diminished supply of available housing.
The Standard & Poor’s/Case-Shiller 20-city home price index climbed 5 percent in July from a year earlier. That’s up from a 4.9 percent annual pace in June.
Home prices rose in all 20 cities over the past 12 months. San Francisco posted the biggest gain of 10.4 percent, followed by Denver with 10.3 percent.
Steady job growth and an economic recovery in its seventh year have encouraged more Americans to buy homes. That lifted sales to an eight-year high in July. Yet buyers have bid up prices in many areas.
The current housing inventory is equal to 5.2 months of sales, below the six months that is typical in a balanced housing market.
Price gains were much smaller in many Eastern and Midwestern cities. Home prices were just 1.7 percent higher in Washington, D.C., compared with 12 months earlier, only 1.8 percent higher in Chicago and up just 1.9 percent in New York.
Svenja Gudell, chief economist at real estate data firm Zillow, said the housing market is continuing to improve despite some conflicting trends. New home sales jumped to a seven-year high in August even as existing home sales slipped. Mortgage rates remain low, though it can be difficult for first-time buyers to qualify for a loan.
“The market is continuing to heal and find its footing in a new environment, one where highly local factors … matter more than national trends,” she said.
The Case-Shiller index covers roughly half of U.S. homes. The index measures prices compared with those in January 2000 and creates a three-month moving average. The July figures are the latest available.
