Seasonally adjusted US house prices rose 0.3% month-on-month in July, ending the flat reading seen in June, while prices climbed 2.6% year-on-year, according to data released by the Federal Housing Finance Agency on September 29.

National house prices returned to growth, though performance varied sharply across regions. After a flat June, the month-on-month reading resumed its rise in July. This index measures changes in the prices of single-family homes. The national month-on-month gain in July was 0.3%, and the flat result previously reported for June was left unchanged.

On a year-on-year basis, the July increase was 2.6%, higher than the roughly 2.3% recorded in June. The index uses a repeat-sales method, tracking price changes for the same properties over time based mainly on transaction data for conforming home loans purchased or securitized by Fannie Mae and Freddie Mac.

Among the nine census divisions, month-on-month changes in July ranged from a decline of 0.8% to a gain of 1.5%. The Mid-Atlantic region rose 1.5%, the strongest among all regions, while the Pacific region gained 0.6%. The Mountain region fell 0.8%, and the East South Central region declined 0.5%.

Year-on-year differences were equally pronounced: the Mid-Atlantic region rose 6.3%, while the Mountain region gained just 0.6%, a gap of 5.7 percentage points. The rebound in the national index was driven by a mix of gains and declines across regions, meaning homebuyers in different areas faced different price trends.

Another national house price index also pointed to faster gains. The S&P Cotality Case-Shiller National Home Price Index released the same day showed prices up 1.9% year-on-year in July, higher than the 1.6% recorded in June, and up 0.3% month-on-month after seasonal adjustment.

The national year-on-year gain in that index is lower than the 2.6% reported by the Federal Housing Finance Agency. Because the two differ in sample scope and methodology, they should not be treated directly as the same set of house price data. The Case-Shiller index also showed that Chicago house prices rose 6.9% year-on-year in July, the largest gain among the major cities it covers, while Seattle fell 1.6%.

Its analysis noted that the national house price gain in July remained below the 3.4% rise in consumer prices over the same period. National nominal house prices continued to climb, while regional divergence and inflation-adjusted performance offer another layer of insight.