Home prices in 20 U.S. cities continued to moderate in June, according to S&P CoreLogic Case-Shiller data released Tuesday.

The report shows more gradual price appreciation that’s allowing the housing market to strengthen. New-home sales unexpectedly surged in July to the strongest level in more than nine years. At the same time, consistent appreciation might convince more sellers to put their homes on the market, and cheap borrowing costs and solid labor-market gains are supporting potential buyers.

Economist Takeaways

“Overall, residential real estate and housing is in good shape,” David Blitzer, chairman of the S&P index committee, said in a statement. “While the real estate sector and consumer spending are contributing to economic growth, business capital spending continues to show weakness.”