Home Prices Rise In All Big Cities In May
Monthly price gain of 2.2% may bode well for summer, though prices dip from 2011 levels.
Spring may have officially closed on a positive note, thanks to today’s S&P/Case-Shiller Home Price Index data (PDF).
Home prices increased 2.2% from April to May in the index’s 10- and 20-city survey, the largest such month-to-month jump in nonseasonally adjusted data in the larger index’s 12-year run. Seasonally adjusted, prices were up 0.9% from April. Prices in the 10-city index were down 1% from May 2011, and the 20-city index showed a 0.7% annual decrease. But both dips were less severe than in April, when 10 of the larger index’s 20 cities showed a yearly decrease.
In May, 17 cities logged annual gains, led by Phoenix’s 11.5% increase. All also showed gains from month to month.
Much of this growth, as The Wall Street Journal’s Nick Timiraos writes, came on the low end of the market. From his post on the WSJ’s “Developments” blog:
In Phoenix, for example, the bottom third of the market (homes below $118,000) is up by 25.8% over the past year. The 7.2% gain for the top third of the market (homes above $198,000) isn’t too shabby, either.
In addition, as home prices start to climb, sales may be suffering. Existing-home sales were down 5.4% in June from May, new-home sales decreased 8.4% in that time, and the number of home-sale contracts dropped 1.4%.
— Tony Stasiek is a producer/editor at MSN Real Estate.