Home prices rise in most major cities in August

NEW YORK -- Home prices rise for the third straight month in August, signaling a housing recovery is taking hold.

The Standard & Poor's/Case-Shiller home price index of 20 major cities released today rose 1 percent from July to a seasonally adjusted reading of 144.5. While prices are down 11.4 percent from August a year ago, the annual declines have slowed since February.

Prices are at levels not seen since August 2003 and have fallen almost 30 percent from the peak in May 2006.

The latest index shows a widespread turnaround with prices rising month-over-month in 15 metro areas since June. Industry experts, however, still worry that rising unemployment and foreclosures could stifle the rebound.

-- The Associated Press