The S&P/Case-Shiller index of property values increased 6.7 percent from July 2013, the smallest 12-month gain since November 2012, a report from the group showed today in New York. Nationally, prices rose 5.6 percent after a 6.3 percent gain in the year ended June.
Property values have shown more subdued appreciation as investors step back from the market and first-time buyers remain a historically smaller share. Easing price increases and strides in the labor market may help more Americans consider homeownership even as wage growth has shown little acceleration.
"In order to support further gains in home prices, you would need stronger housing demand, an improvement in the rate of household formation, and inventory levels to remain lean," said Michael Gapen, a senior U.S. economist for Barclays Capital Inc. in New York. "You will get all of this, it will just be at a moderate pace" since owners shouldn't anticipate "8 to 10 percent out of your home forever," Gapen said.
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