Survey: Home prices up in half of major US cities

WASHINGTON (AP) - Home prices rose in August in half of major cities measured by a private survey, a sign that prices are stabilizing in some hard-hit portions of the country.

The Standard & Poor's/Case-Shiller index showed Tuesday that prices increased in August from July in 10 of the 20 cities tracked. That marked the fifth straight month that at least half of the cities in the survey showed monthly gains.

The biggest price increases were in Washington, Chicago and Detroit. The greatest declines were in Atlanta and Los Angeles.

The August data provides a "modest glimmer of hope" that some areas may have bottomed out and could be turning around, said David M. Blitzer, chairman of S&P's index committee.

He noted that cities in the Midwest - Chicago, Detroit and Minneapolis - have shown some strength since May.

In Minneapolis and Chicago, fewer homes are being put up for sale, leading to higher prices and better sales figures. That's likely due to fewer foreclosures in those cities. September's drop in homes for sale in the Twin Cities was the largest decline in inventory in more than seven years, according to the Minneapolis Area Association of Realtors.

Still, Robert Shiller, the co-founder of the index and a Yale economics professor, said in an interview on CNBC that overall home prices were "flat" and a recovery in the struggling housing market was not on the horizon.

The index, which covers half of all U.S. homes, measures prices compared with those in January 2000 and creates a three-month moving average. The August data are the latest available.

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