Home price gains continued to slow in May, posting smaller
annual increases than In April the S&P Dow Jones Indices said today. The Indices' Case-Shiller 10-City Composite
Index was up 9.4 percent compared to May 2013 and the 20-City was 9.3 percent
higher. In April the two composites
posted annual increases of 10.9 and 10.8 percent respectively.
Both Composites increased by 1.1 percent from April to May
and for the second straight month all 20 cities had positive returns. But that's only true on an unadjusted basis. When it comes to to home price data, seasonal buying/selling trends tend to be kind to prices in the Spring and Summer months. Adjusting for those affects, prices were down 0.3 percent in May--the first seasonally-adjusted decline in more than 2 years.
Regionally, Charlotte's increase of 1.4 percent was its
highest of the year and it, along with Tampa which had a 1.8 percent increase,
were the only two cities where the annual rates of increase did not decelerate. Other large monthly gains were seen in San
Francisco at 1.6 percent and Chicago at 1.5 percent. On the low end of the scale Phoenix and San
Diego, up 0.4 and 0.5 respectively, were the only cities with gains under one
"Home prices rose at their slowest pace since February of
last year," David M. Blitzer, Chairman of the Index Committee at S&P Dow
Jones said. "The 10- and 20-City
Composites posted just over 9 percent, well below expectations. Month-to-month, all cities are posting gains
before seasonal adjustment; after seasonal adjustment 14 of 20 were lower."
Nine cities still posted double-digit annual increases in
May. The largest were Las Vegas (16.9 percent),
San Francisco (15.4 percent), Miami (13.2 percent), and San Diego (12.4 percent). The San Francisco and San Diego increases
represented a three point deceleration in the rate of increase. Double digit gains were also posted by Los
Angeles, Detroit, Atlanta, Tampa, and Portland,
"Housing has been turning in mixed economic numbers in the
last few months," Blitzer said. "Prices
and sales of existing homes have shown improvement while construction and sales
of new homes continue to lag. At the
same time the broader economy and especially employment are showing larger
improvements and substantial gains.
Average home prices across the U.S. in May were back to summer
2004 levels. The peak to current decline
for both the 10- and 20- City Composites measured from July/July 2006 was 17-18
percent. Since the post-crash low in
March 2012 the 10-City Composite has recovered by 26.5 percent and the 20-City
by 27.3 percent.
Nine cities showed higher monthly increases in May than in
April. In addition to Charlotte and
Tampa they included Cleveland, Detroit, Las Vegas, Los Angeles, Miami,
Minneapolis, and New York. Dallas and
Denver continue to set new price peaks while Detroit remains the only city
below its January 2000 base value at a current index of 96.11.
The Case-Shiller indices are constructed to accurately track
the price path of typical single-family homes located in each of the 20
metropolitan areas. Ach index combines
matched prices pairs from the available universe of arms-length sales
data. The indices have a base value of
100 in January 2000 so a home with a current index value of 150 has increased
in value by 50 percent since that date.