NEW YORK – Average home prices increased in nearly all major U.S. cities in August, boding well for a continued recovery in the housing market.

According to the Standard & Poor/Case-Schiller Home Price Indices, average home prices increased approximately 1% in August compared to July for most areas, with Phoenix posting its fourth consecutive month of double-digit gains in annual rates in August. At 0.9%, Las Vegas also recorded its first year-over-year gain since January 2007.

“Home prices continued climbing across the country in August,” David M. Blitzer, chairman of the Index Committee at S&P Dow Jones Indices, said in a statement. “Nineteen of the 20 cities and both Composites showed monthly gains in August. Seventeen cities and both Composites posted positive annual returns in August 2012. In 18 cities and both Composites annual rates improved in August versus July. Dallas’ rate remained unchanged at +3.6% and Chicago worsened slightly from a -1.0% annual rate in July to a -1.6% annual rate in August.

“The sustained good news in home prices over the past five months makes us optimistic for continued recovery in the housing market.”

According to the index, single family housing starts are ahead 43% over last year’s pace, while the inventory for existing homes on the market continues to drop.

The table below summarizes the results for August 2012.