Home prices in major U.S. metropolitan areas unexpectedly showed an annual rate of growth in the month of June, according to a report released by Standard & Poor's on Tuesday.
The report showed that the S&P/Case-Shiller 20-City Composite Home Price Index rose by 0.5 percent in June compared to the same month a year ago. Economists had been expecting the index to edge down by about 0.3 percent year-over-year.
S&P also said the 20-City Composite Home Price Index increased by a seasonally adjusted 0.9 percent on a monthly basis in June compared to a 1.0 percent increase in May.
On a non-seasonally adjusted basis, the 20-City Composite Home Price Index surged up by 2.3 percent in June, matching the increase seen in the previous month.
David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices, said, "In this month's report all three composites and all 20 cities improved both in June and through the entire second quarter of 2012."
"All 20 cities and both monthly Composites rose for the second consecutive month," he added. "It would have been a third consecutive month had we not seen home prices fall in Detroit back in April."
Wednesday morning, the National Association of Realtors is scheduled to release a separate report on pending home sales in the month of July. Economists expecting pending home sales to increase by 1.0 percent in July compared to a 1.4 percent drop in June.
A pending sale is one in which a contract was signed but not yet closed. Normally, it takes four to six weeks to close a contracted sale.
by RTT Staff Writer
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