SmartHomeOwners

NEW YORK:  A national gauge of U.S. home prices ticked up in July for the fourth straight month, but many cities were bracing for declines in the year ahead.

The Standard & Poor's/Case-Shiller 20-city home price index released Tuesday increased 0.6 per cent in July from June. The monthly changes are based on a three-month moving average for May, June and July.

Sales in May and June were inflated by now-expired government homebuyer tax credits. July had the slowest sales pace in 15 years.

Now, with the peak buying season over, a record number of foreclosures and widespread concern over employment, weak demand from buyers is pushing prices down.

Twelve cities showed monthly price gains, while Cleveland's prices were flat.

However, seven cities showed month-over-month declines and the gains in many cities were weaker than in the previous month.

The biggest monthly price increases were in Detroit, New York and Washington. All three cities had price increases of roughly one per cent.

Las Vegas and Phoenix had the largest declines of 0.8 per cent and 0.6 per cent, respectively.

Nationally, prices have risen almost seven per cent from their April 2009 bottom. But they remain nearly 28 per cent below their July 2006 peak.

Most experts predict about five million homes will be sold in the United States this year. That would be in line with last year and just above 2008, the worst sales performance since 1997.

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