Economic Report: U.S. home-price growth slips in May from record high: Case-Shiller

by | Jul 26, 2022 | Stock Market

The numbers: The S&P CoreLogic Case-Shiller 20-city index decelerated to a 20.5% year-over-year gain in May down from 21.2% in the previous month. In May, the 20-city index rose a seasonally adjusted 1.3%, down from 1.7% in April. S&P said that the year-over-year growth in May was the second highest for the 20-city index. April’s gain was the peak.

A separate report from the Federal Housing Finance Agency showed a 1.4% monthly gain. And over the last year, the FHFA index was up 18.3% Key details: Tampa, Miami, and Dallas reported the highest year-over-year gains among the 20 cities in May. Price growth was strongest in the South and Southeast, which saw 30.7% growth.  Minneapolis, Chicago, and D.C. reported the lowest year-over-year gains, though these cities still saw home prices grow. No cities reported price declines. Big picture: Economists think that the moderation in home price growth is the start of a new trend.  Housing affordability is down to its lowest level in 15 years, which should start to “restrain house price acceleration,” Lou Crandall, chief economist at Wrightson ICAP, wrote in a note prior to the release of the data.  The cost of borrowing has increased dramatically s …

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