The price of single-family homes dropped 0.1% in July following a 0.2% rise in June, according to the S&P/Case-Shiller home price indexes released Tuesday.
Annual growth rates slowed across the board, in 16 of the 20 metropolitan regions surveyed and in the 10-city and 20-city composites, the S&P/Case-Shiller results showed. Compared to where it was in July 2009, the 10-city composite was reported up 4.1% and the 20-city composite was up 3.2%.
The data were in line with the expectations of economists, who warn that prices will remain low as effects of this year’s federal tax credit for first-time homebuyers disappear.
“Home prices crept forward in July. Ten of the 20 cities saw year-over-year gains and only one–Las Vegas–made a new bottom, as the impact of the first-time homebuyer program continued to fade away,” said David Blitzer, chairman of the Index Committee at Standard & Poor’s, in a statement. “While we could still see some residual support from the homebuyers’ tax credit, which covers purchases closing through September 30, anyone looking for home prices to return to the lofty 2005-2006 might be disappointed. Judging from the recent behavior of the housing market, stable prices seem more likely.”