With this spring’s tax credit still working its way through the housing market, the price of U.S. homes rose 1% in June for the third consecutive month, according to the Standard & Poor’s Case-Shiller index released Tuesday, August 31.
The U.S. National Home Price Index rose 4.4% in the second quarter of 2010, after having fallen 2.8% in the first quarter. The index was up 1% from May to June, and home prices are 3.6% above their year-earlier levels. Prices are up 6% from their April 2009 low, but 28% below their July 2006 peak.
Despite the positive news, the outlook for the U.S. housing market is not so promising.
“Housing prices have rebounded from crisis lows, but other recent housing indicators point to more ominous signals as tax incentives have ended and foreclosures continue,” according to a statement in the S&P/Case-Shiller release.
The data showed continued gains for home prices in June but at a slower pace compared to May. The unadjusted composite 10-city index rose 1.0% in June versus a 1.3% gain in May, revised 1.2%. But there’s plenty of seasonality in home prices with warm weather having a positive impact. Adjusted data, which exclude the positive seasonal effect of warm summer weather, shows only a 0.3% rise, slower than the 0.5% increases in May and April.