United States: Growth in home prices softens further in May
July 29, 2014
In May, the unadjusted S&P/Case-Shiller 20-city home price composite index increased 1.1% over the previous month. The reading undershot market expectations of a 1.5% rise and came in just below the 1.2% reading registered in the previous month.
On an annual basis, home prices rose 9.3% over the same month last year, which was down from the 10.8% rise recorded in April and marked the weakest gain since February of last year. Moreover, S&P emphasized that, while housing prices continue to rise, the overall pace is slowing; annual price increases moderated in 19 of the 20 cities surveyed. Moreover, despite the strong performance in recent months, prices still remain 17.2% below the July 2006 peak.
According to S&P, “housing has been turning in mixed economic numbers in the last few months. Prices and sales of existing homes have shown improvement while construction and sales of new homes continue to lag.”
Author: Carl Kelly, Economist