United States: Growth in home prices softens further in June
August 26, 2014
In June, the unadjusted S&P/Case-Shiller 20-city home price composite index increased 1.0% over the previous month. The reading matched market expectations but came in below the 1.2% reading registered in the previous month.
On an annual basis, home prices rose 8.1% over the same month last year, which was down from the 9.4% rise recorded in May and marked the weakest gain since December 2012. Moreover, S&P emphasized that, while housing prices continue to rise, the overall pace is slowing; annual price increases moderated in all 20 cities surveyed. Moreover, despite the strong performance in recent months, prices still remain 16.4% below the July 2006 peak.
According to S&P, “Home price gains continue to ease as they have since last fall. For the first time since February 2008, all cities showed lower annual rates than the previous month. Other housing indicators – starts, existing home sales and builders’ sentiment – are positive. Taken together, these point to a more normal housing sector.”
Author: Carl Kelly, Economist