Home price appreciation eased during May, according to the S&P CoreLogic Case-Shiller Indices released Tuesday morning, which cover activity during May 2016.
The national index, covering all nine census divisions, posted a 5.0% annual gain in May, the same level seen in April. The 20-City Composite and 10-City Composite posted a increase year-over-year of 5.2% and 4.4%, respectively, a lower pace of growth than that seen a month prior. Not seasonally adjusted, all three portions of the index edged up marginally from April levels. After seasonal adjustment, the National Composite increased by a scant 0.2% month-over-month, while 10-City Composite and 20-city Composite gained 0.2% and 0.1%, respectively. Among the cities in the 20-City Composite (after seasonal adjustment), 12 cities experienced home price gains between April and May, compared to 15 a month prior, and only six cities in March.
"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.,” said David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices, in a statement. Although May's results are still in the positive, slowed growth in home prices in expected in the future, echoed by results of the SCE Housing Expectation Survey from Federal Reserve Bank of NY.
"Regional patterns seen in home prices are shifting. Over the last year, the Pacific Northwest has been quite strong while prices in the previously strong spots of San Diego, San Francisco and Los Angeles saw more modest increases. The two hottest areas during the housing boom were Florida and the Southwest. Miami and Tampa have recovered in the last few months while Las Vegas and Phoenix remain weak. When home prices began to recover, New York and Washington saw steady price growth; now both are among the weakest areas in the country."
Among all census regions, the Pacific Northwest and the West continue to be the strongest markets. The Northeast and Upper Mid-West regions, however, were at the other end of the ranking. The cities posting largest year-over-year gains have been fairly consistent over the past four months.
Cities with the largest year-over-year price gains are:
- Portland, Ore.: up 12.5%
- Seattle, Wash.: up 10.7%
- Denver, Colo.: up 9.5%
- Dallas, Texas: up 9.0%
- Tampa, Fla.: up 7.7%
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