United States: House prices moderate further in June
August 30, 2016
The S&P/Case-Shiller 20-city home composite index rose 0.8% in June over the previous month. The result, which was in line with market expectations, came in slightly below the 0.9% increase recorded in May and marked a second month of moderation. When adjusted for seasonal factors, home prices decreased 0.1% over the previous month, marking the third consecutive decline (May: -0.1% month-on-month).
In annual terms, home prices rose 5.1% in June, which edged down from the 5.3% increase recorded in May. In a statement, S&P said that Denver, Portland and Seattle continue to be the cities with the greatest increases.
According to S&P, “In the strongest region, the Pacific Northwest, prices are rising at more than 10%; in the slower Northeast, prices are climbing a bit faster than inflation. Nationally, home prices have risen at a consistent 4.8% annual pace over the last two years without showing any signs of slowing.”
Author: Ricardo Aceves, Senior Economist