U.S. Home Prices Falls Short Of Expectations

U.S. single-family home prices rose less than expected on an annual basis in May, and were down from the prior month, a survey showed on Tuesday.

The S&P CoreLogic Case-Shiller composite index of 20 metropolitan areas rose 5.2 percent in May on a year-over-year basis, retreating from the 5.4 percent climb in the prior month and short of the estimate for a 5.5 percent increase from a Reuters poll of economists.

“Overall, housing is doing quite well,” said David M. Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices.

“In addition to strong prices, sales of existing homes reached the highest monthly level since 2007 as construction of new homes showed continuing gains.”

Prices in the 20 cities fell 0.1 percent in May from April on a seasonally adjusted basis, the survey showed, matching expectations for a decline of 0.1 percent.

On a non-seasonally adjusted basis, prices increased 0.9 percent from April.

Home prices in three U.S. cities – Denver, Seattle and Portland, Oregon – showed the highest year-over-year gains, the survey showed.

Reuters

Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell