HispanicBusiness

Home prices in the Chicago area rose in August but at a smaller pace than in July, according to a widely watched barometer of the nation's housing industry released Tuesday.

The S&P/Case-Shiller home price index showed local home prices increased 0.7 percent in August, from July, but remain down 1.6 percent from a year ago. In July, home prices posted a 2.7 percent gain from June.

Chicago was among the 19 of the 20 cities included in the monthly index to show positive home price movement in August. However, it was one of only three cities in the index, along with Atlanta and New York, to show a year-over-year decrease.

It was the sixth consecutive month-over-month improvement in Chicago-area home prices, which are now on par with where they were in Mach 2002.

Nationally, the 20-citiy composite index recorded a 2 percent annualized gain in August. "The sustained good news in home prices over the past five months makes us optimistic for continued recovery in the housing market," said David Blitzer, chairman of S&P Dow Jones Indices' index committee.