Published by Mortgage Bankers Association on July 29, 2020
The Standard & Poor’s CoreLogic Case-Shiller Home Price Indexes reported modest home price increases in May, showing a stable trend amid recent market volatility.
The report said the National Home Price NSA Index showed a 4.5% annual gain in May, down slightly from 4.6% in April. The 10-City Composite annual increased by 3.1%, down from 3.3% in April. The 20-City Composite posted a 3.7% year-over-year gain, down from 3.9% in April.
Phoenix led with a 9% year-over-year price increase in May, followed by Seattle at 6.8% and Tampa at 6 % increase. Three of the 19 cities reported higher price increases in the year ending May from a year ago.
Month over month, the National Index posted an 0.7% increase, while the 10-City and 20-City Composites posted increases of 0.3% and 0.4%, respectively, before seasonal adjustment in May. After seasonal adjustment, the National Index posted a month-over-month increase of 0.1%, while the 10City and 20-City Composites were unchanged. Seventeen of the 19 cities (excluding Detroit) reported increases before seasonal adjustment, while 11 of the 19 cities reported increases after seasonal adjustment.
“May’s housing price data were stable,” said Craig J. Lazzara, Managing Director and Global Head of Index Investment Strategy with S&P Dow Jones Indices. “More data will obviously be required in order to know whether May’s report represents a reversal of the previous path of accelerating prices or merely a slight deviation from an otherwise intact trend. Even if prices continue to decelerate, that is quite different from an environment in which prices actually decline.”
Selma Hepp, Deputy Chief Economist with CoreLogic, said signs of growth are still promising, although the proceeding months could tell a different tale.
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