This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Home Price Gains Slow in July, August

Updated from 8:50 a.m. ET with the following correction. The metro areas that saw declines in prices were not among the 40 largest.

NEW YORK (TheStreet) -- Home price appreciation slowed in July, according to Lender Processing Services, the latest sign that the housing recovery is losing steam.

The LPS Home Price Index rose just 0.6% in July from June, though prices are still up 8.7% year over year.

All of the five largest states and metropolitan areas saw price appreciation moderate. In California and Los Angeles, gains slowed to 0.5% and 0.3%, respectively, in July from 1.6% and 1.2% in June.

While all states managed to either record gains in home values or stay flat, some metros saw a slight dip in home prices, including Lancaster, York and Harrisburg in Pennsylvania, Ocean City, N.J., Winston, N.C., and Akron, Ohio.

The LPS Home Price Index is a repeat-sales analysis of home prices that represents the price of non-distressed sales by taking into account the discounts of foreclosures and short sales. It is based off closings in July.

It comes a day ahead of the widely followed S&P Case-Shiller Index, which is based off a three-month moving average and doesn't consider the impact of distressed sales.

Home prices are sharply off their bottom, and nationwide prices are just under 15% off the June 2006 peak, according to LPS.

Higher interest rates and the rapid appreciation in home values has, however, dented affordability for many borrowers and homebuilders and brokers report that buyers have shown hesitancy in recent transactions.

Most economists, however, hold the view that the rise in interest rates will not derail the housing recovery, so long as the economy continues to add more jobs. That's because there is considerable pent-up demand, a shortage of inventory and interest rates are still historically low.

Trulia chief economist Jed Kolko noted that it is still cheaper to buy than to rent nationally, though in some cities, especially in California, that trend could soon reverse.

A separate report from Zillow showed home prices continued to gain in August, up 0.4% from July and up 6.6% year over year.

Still, for the third month in a row, home values rose more slowly than the previous month.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,563.30 -317.06 -1.88%
S&P 500 1,930.67 -39.40 -2.00%
NASDAQ 4,369.7730 -93.1290 -2.09%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs