No change in pace of gain in May
Existing single-family home prices across the nine US Census divisions remained steady in May according to the latest S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index.
The national index was up 6.4% year-over-year, the same as in April; although the 10-City Composite was lower than a month earlier at 6.1% (vs 6.4%) and the 20-City Composite was also lower than the previous month at 6.5% (vs 6.7%).
"Home prices continue to rack up gains two to three times greater than the inflation rate," says David M. Blitzer, Managing Director & Chairman of the Index Committee at S&P Dow Jones Indices. "The year-over-year increases in the S&P CoreLogic Case-Shiller National Index have topped 5% every month since August 2016.
He added that the data shows that prices are gaining consistently and doing so across the country, unlike in the boom-bust surrounding the financial crisis.
Monthly gains before seasonal adjustment were 1.1% for the National Index; 0.5% for the 10-City Composite and 0.7% for the 20-City Composite. After seasonal adjustment, the National Index recorded a 0.4% month-over-month increase in May while the 10-City and 20-City Composites posted 0.1% and 0.2% month-over-month increases, respectively.
Rising prices affecting other housing metrics
Blitzer added that price increases combined with rising mortgage rates are having an impact on other housing market figures.
"Sales of existing single family homes peaked last November and have declined for three months in a row. The number of pending home sales is drifting lower as is the number of existing homes for sale,” he said. “Sales of new homes are also down and housing starts are flattening. Affordability – a measure based on income, mortgage rates and home prices – has gotten consistently worse over the last 18 months.”
