United States: Housing prices edge down in May
July 26, 2016
The S&P/Case-Shiller 20-city home composite index rose 0.9% in May over the previous month. The result came in below the 1.1% increase recorded in April and overshot the 0.5% rise the markets had expected. When adjusted for seasonal factors, home prices decreased 0.1% over the previous month, marking the second consecutive decline (April: -0.2% month-on-month).
Compared to the same month last year, home prices rose 5.2% in May, which was slightly down from the 5.4% increase recorded in April. In a statement, S&P said that Denver, Portland and Seattle continue to be the cities with the greatest increases.
According to S&P, “overall, housing is doing quite well. In addition to strong prices, sales of existing homes reached the highest monthly level since 2007 as construction of new homes showed continuing gains. The SCE Housing Expectations Survey published by the New York Federal Reserve Bank shows that consumers expect home prices to continue rising, though at a somewhat slower pace.”
Author: Ricardo Aceves, Senior Economist