The Standard & Poor’s/Case-Shiller composite index of 20 metropolitan areas rose 0.9% in July compared with June when values rose 1.2%.

July represented the fourth consecutive monthly rise.

On an annual basis, however, prices are 4.1% lower.

The US housing market has remained in the doldrums for some time now and many have suggested it is holding back the recovery of the world’s largest economy but the latest figures suggest the housing market may be stabilising.

According to one economist, the oversupply of existing homes, particularly taking into account all those in foreclosure or soon to be, looks set to keep pressure on prices for some time.

Commenting on the index, David Blitzer, S&P’s index committee head, said: “This is still a seasonal period of stronger demand for houses, so monthly price increases are expected.

However, he cautions that a sustained recovery is a long way off and several factors suggest that the “housing market is still bottoming and has not turned around.”

Meanwhile, 18 of the 20 metropolitan areas in the index posted an annual decline in July – led by a 9% fall in Minneapolis.

The only two areas to see a rise were Detroit and Washington which increased 1.2% and 0.3% respectively.

Meanwhile, house sales continue to be depressed. Yesterday, the Commerce Department revealed sales of new homes in the US fell to a six-month low in August.

According to the Commerce Department, new single-family home sales fell 2.3% in August to a seasonally adjusted annual rate of 295,000 units – the lowest level since February.

The figure is now less than half the 700,000 units which experts believe demonstrates a healthy market.

Demand for housing in the US remains weak, despite mortgage rates hovering at record lows and falling house prices – the latter due to millions of home repossessions.

Figures today show consumers continue to cutback in the face of higher inflation and rising unemployment after Kesa, the parent company of electrical retailer Comet, revealed a sharp fall in sales.

Total revenue in the previous three months fell by 9.8% on a like-for-like basis while sales slumped almost 22% after the company blamed weak trading.

However, the company said the fall was expected and compares with strong sales in 2010 due to the football World Cup and the popular launch of Apple’s iPad.

Kesa also claimed that Comet sales had shown “an improving trend through the quarter”.

Chief executive Thierry Falque-Pierrotin comments: “The start of the year has been tough against the strong World Cup comparatives of last year and weakening market conditions.”

The weak figures follow a 6.8% decline in sales at Comet announced in June, sending the UK electricals business into a €10 million (£9 million) loss.

The figures come just a day after the John Lewis Partnership, which is regarded as a barometer of British retailing, has reported a marginal increase in sales and said trading conditions are “extremely challenging”.

The renowned employee-owned chain, which owns the Waitrose supermarket chain, said sales rose 1% on a like-for-like basis in the six month period to 30 July.

However, across the group, first-half pre-tax profits slumped by 18% to £90.4 million.

In addition, last week, Home Retail Group announced a drop in sales at both its Argos and Homebase chains, while electrical goods chain Dixons Retail posted a fall in sales.

Accountancy firm BDO recently warned Britain’s retailers should prepare themselves for some tough times as pressure builds on consumers in the run-up to Christmas.

Several retailers are under severe financial strain as the face their quarterly rent deadline at the end of this month.

Earlier this year, the rent deadlines at the end of March and June resulted in a series of retailers entering administration including Focus DIY, Habitat, TJ Hughes and fashion chain Jane Norman.

The John Lewis Partnership, which is regarded as a barometer of British retailing, has reported a marginal increase in sales and said trading conditions are “extremely challenging”.

The renowned employee-owned chain, which owns the Waitrose supermarket chain, said sales rose 1% on a like-for-like basis in the six month period to 30 July.

However, across the group, first-half pre-tax profits slumped by 18% to £90.4 million.

The company has bucked the trend when it comes to retail sales over the last few months but today’s figures highlight ongoing concerns about spending as consumers cut back due to high unemployment, rising inflation and spending cuts.

In the meantime, Waitrose said sales were 8.7% higher at £2.6 billion but profits were down 13.8%.

However, it highlighted that 300,000 more customers shopped at Waitrose each week and its market share had risen by 0.2% to 4.1%.

Chairman, Charlie Mayfield, said trading conditions were set to remain challenging for the remainder of the year and into next year.

He comments: “We are not simply waiting for the recovery, but instead we have increased the pace of investment and innovation across the Partnership putting us in the best possible position to seize the opportunity created by a rapidly changing retail environment.”

The figures come shortly after other British retailers have reported tough trading conditions.

Home Retail Group announced a drop in sales at both its Argos and Homebase chains last week, while electrical goods chain Dixons Retail posted a fall in sales.

Many High Street retailers continue to struggle as consumers’ cutback and the British Retail Consortium (BRC) highlighted this in its retail sales report for August.

According to the BRC, like-for-like sales (which exclude the impact of sales at new stores) fell 0.6% last month on an annual basis.

Accountancy firm BDO recently warned Britain’s retailers should prepare themselves for some tough times as pressure builds on consumers in the run-up to Christmas.

Several retailers are under severe financial strain as the face their quarterly rent deadline at the end of this month.

Earlier this year, the rent deadlines at the end of March and June resulted in a series of retailers entering administration including Focus DIY, Habitat, TJ Hughes and fashion chain Jane Norman.