Nationally home prices fall but Boston edges up

US home sale prices continued to slide in July, according to the Case-Shiller index, which tracks sales of the same properties over time. (David Zalubowski/Associated Press)

As house prices around the country slumped again in July, Boston prices went in the opposite direction and nudged up 0.2 percent, according to the Standard & Poor's/Case-Shiller home price index released yesterday.

In contrast, prices declined between 1 and 3 percent between June and July in several cities, including Los Angeles, Miami, New York, San Francisco, Seattle, and Washington.

Over the past year, prices in the Boston area declined 5.4 percent, compared with double-digit declines in 11 of the 20 cities that Case-Shiller tracks. The 20-city index dropped 0.9 percent in July and 16.3 percent over the past year. "There are signs of a slowdown in the rate of decline across the metro areas, but no evidence of a bottom," David M. Blitzer, chairman of S&P's index committee, said.

The Case-Shiller index is among the most closely watched indicators of the housing market because it tracks repeat sales of the same house over time.

The housing slump is at the center of the meltdown in financial markets as declining demand pushes down property values and causes foreclosures to mount. Banks will probably stiffen lending rules even more in coming months to limit losses, indicating residential real estate will keep contracting and consumer spending will continue to falter.

"The fact that house prices quickened their slide before the worst point in credit markets hit this month does not bode well," said economist Derek Holt at Scotia Capital Inc. in Toronto.

Home prices decreased 0.9 percent in July from the prior month after declining 0.5 percent in June, the report showed. The figures aren't adjusted for seasonal effects so economists prefer to focus on year-over-year changes.