United States: Home prices continue to rise on seasonal factors
August 30, 2011
In June, the S&P/Case-Shiller home price composite 20-city index increased 1.1% over the previous month, which was in line with market expectations. As was the case in May, the monthly price rise partly reflects seasonal developments, as summer usually witnesses a stronger demand for houses and consequently slightly higher prices. Building on the monthly price rise, in annual terms home prices dropped 4.5%, which marked a slight improvement over the revised 4.6% price decline recorded in May (previously reported: -4.5% year-on-year). The subdued print, nonetheless, underscores the weak housing market amidst the lacklustre economic recovery and rising unemployment.