Mixed news on U.S. housing
There was unexpected news in the housing market this morning: “U.S. single-family home prices fell unexpectedly in May, declining for the first time in more than two years,” Reuters’ Chuck Mikolajczak reports. Seasonally adjusted, the S&P Case Shiller index of 20 metro areas fell 0.3 percent. That is the index’s first monthly decline since January 2012.
On a year-over-year basis – that is, comparing May 2013 prices to May 2013 prices – things look better, but are still clearly cooling down: home prices were up 9.3 percent, but the rate of increase has fallen every month since December 2013. It hit a high of 13.4 percent that month.