United States: Home prices record rise on seasonal effects
July 26, 2011
In May, the S&P/Case-Shiller home price composite 20-city index increased 1.0% over the previous month, which was in line with market expectations. However, the monthly price rise reflects, in part, seasonal developments, as May is ?a period of stronger demand for houses, so monthly price increases are to be expected and were seen in 16 of the 20 cities.? In fact, despite the monthly price increase, home prices dropped 4.5% in annual terms, which was below the revised 4.2% price drop seen in April (previously reported: -4.0% year-on-year). The subdued print confirms fears of a double-dip in the housing market amidst the lacklustre economic recovery and rising unemployment.