Tuesday, 13 April 2021 | The Latest Buzz for the Appraisal Industry

Case-Shiller: Home Price Growth Continued to Slow in May

U.S. home prices increased 0.2% on an adjusted basis in May compared with April and were up 3.4% compared with May 2018, as home price appreciation continued to slow, the S&P CoreLogic Case-Shiller home price index shows.

The 10-city composite, which measures home price growth in the 10 largest U.S. cities, saw prices increase an average of 0.1%, month-over-month, while the 20-city composite also posted a gain of 0.1%.

On a non-adjusted basis, the 10-city composite posted a 0.5% increase and the 20-city composite reported a 0.6% increase for the month.

Year over year, the 10-city composite posted an annual increase of 2.2%, down from 2.3% the previous month. The 20-city composite posted a 2.4% year-over-year gain, down from 2.5% the previous month.

Las Vegas, Phoenix and Tampa reported the highest year-over-year gains among the 20 cities.

In May, Las Vegas led the way with a 6.4% year-over-year price increase, followed by Phoenix with a 5.7% increase, and Tampa with a 5.1% increase.

Seven of the 20 cities reported greater price increases in the year ending May 2019 versus the year ending April 2019.

“Nationally, year-over-year home price gains were lower in May than in April, but not dramatically so and a broad-based moderation continued,” says Philip Murphy, managing director and global head of index governance at S&P Dow Jones Indices. “Among 20 major U.S. city home price indices, the average year-over-year gain has been declining for the past year or so and now stands at the moderate nominal year-over-year rate of 3.1 percent.”

Murphy notes that although home price gains “seem generally sustainable for the time being, there are significant variations between year-over-year rates of change in individual cities.”

“Seattle’s home price index is now 1.2 percent lower than it was in May 2018, the first negative year-over-year change recorded in a major city in a number of years,” Murphy says. “On the other hand, Las Vegas and Phoenix, while cooler than they were during 2018, remain quite strong at 6.4 percent and 5.7 percent year-over-year gains, respectively.

“Whether negative year-over-year rates of change spread to other cities remains to be seen; for now, there is still substantial diversity in local trends,” Murphy adds. “Nationally, increasing housing supply points to somewhat weakened demand, but the fact that seven cities experienced stronger year-over-year price gains in May than they did in April suggests an underlying resiliency that may mitigate the risk of overshooting to the downside at the national level.”

The post Case-Shiller: Home Price Growth Continued to Slow in May appeared first on MortgageOrb.



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