The S&P/Case-Shiller Home Price Indices, the leading measure of U.S. home prices, showed a 0.2% increase in both the 10- and 20-CityComposites in August versus July. However, compared to August 2010, the 10- and 20-City Composites posted annual returns of -3.5% and -3.8% respectively.

Ten of the 20 cities reported increases in home prices in August. In fact, home prices have just now reached levels seen in mid-2003. In addition, 16 of the 20 MSAs and both Composites posted improved annual returns compared to July’s data.

“There was some weakness in the monthly statistics, as 10 of the cities post price declines in August over July,” says David M. Blitzer, Chairman of the Index Committee at S&P Indices. “And even though the annual rates are largely improving, 18 MSAs and both Composites are still negative. Nationally, home prices are still below where they were a year ago.”

Blitzer went on to say, “In the August data, the good news is continued improvement in the annual rates of change in home prices. In spring and summer’s seasonally strong period for housing demand, we cautioned that monthly increases in prices had to be paired with improvement in annual rates before anyone could declare that the market might be stabilizing. With 16 of 20 cities and both Composites seeing their annual rates of change improve in August, we see a modest glimmer of hope with these data.”

Source: S&P/Case-Shiller Home Price Indices