National Home Values Rise but Still Fail To Keep Pace With Inflation

National growth in home values continued to pick up speed in July, building on June's performance and further bolstered by sustained demand in supply-constrained markets.The value of single-family homes as measured by repeat transactions saw a 1.9% year-over-year increase in July compared to a year ago, up from an upwardly revised 1.6% annual increase the month prior, according to data from the S&P Cotality Case-Shiller Index released Tuesday.Across the 20 cities tracked by the index, Chicago led the nation for the fifth consecutive month with a 6.9% annual gain, holding steady from June. New York followed with a year-over-year increase of 5.8%, up from 4.8% the previous month, while Cleveland came in third, recording a gain of 4.2%, up from 4.1% in June.However, while nominal home values accelerated nationally, they fell in real terms for the 14th consecutive month, as July’s 3.4% inflation rate ran roughly 1.5 percentage points above the 1.9% home price gain.Rebecca Kaufman, associate director of commodities at S&P Dow Jones Indices, says the latest data reflects a silver lining. "Slightly lower inflation and stronger nominal home price appreciation helped narrow the gap,...