ARIZONA DAILY STAR/AP:    Tues., Sept. 29, 2009

Index shows home prices increase from June to July

 NEW YORK — Home prices rose for the third month in a row, a closely watched index said Tuesday.  The Standard & Poor’s/Case-Shiller home price index of 20 major cities rose 1.2%  from June to a reading of 143.05. Though home prices are still 13.3% below July a year ago, the annual declines have slowed in all 20 cities for the sixth straight month.

The index is down about 33% from the peak in mid-2006. Home prices are now at levels not seen since the third quarter of 2003. And prices in Las Vegas, Detroit and Seattle are still falling on a monthly basis.

“We do need to be cautious in coming months to assess whether the housing market will weather the expiration of the federal first-time buyer’s tax credit in November, anticipated higher unemployment rates and a possible increase in foreclosures,” said David M. Blitzer, committee chairman for the Case-Shiller index.

First-time homeowners can qualify for a tax credit worth 10% of the purchase price, up to $8,000, but it expires at the end of November.

Still, there are clear positive trends: 13 metro area posted at least three straight months of price gains.  Last week, data showed home resales dropped unexpectedly in August, the first decline since April, and new home sales edged up a disappointing 0.7%