The S&P/Case-Shiller composite 20-city index, which tracks single-family homes, was up 1.6 percent in July from June. Sixteen of the 20 cities demonstrated year-over-year gains in July, and all 20 index areas had monthly upticks in home prices.
The city with the largest annual increases was Phoenix (16.6%), followed by Minneapolis (6.4%) and Detroit (6.2%). The areas that faced annual drops were Atlanta (9.9%), New York (2.6%), Las Vegas (1.0%) and Chicago (0.9%).
Homes in the lower end of the market saw the biggest leaps in value, according to an analysis of the Case-Shiller data by Patrick Newport and Michelle Valverde of research firm IHS Global Insight.
In the last three months, the cheapest homes have been increasing in prices more than twice as fast as middle- and upper-tier residences, Newport told the Associated Press. “Prices just shot up too fast on the way up and then went down more sharply… We’re seeing the correction from that,” he said, adding that luxury homes lost less value in the housing crisis and recovered more quickly.