Average home prices increased by 2.2% in May over April for both the 10- and 20-city composites covered by the S&P/Case-Shiller Home Price Indices. However, home prices fell year-over-year by 1% for the 10-city composite and by 0.7% for the 20-city composite.
Both composites and 17 of the 20 metropolitan areas covered by the indices saw increases in annual returns in May compared to April. Atlanta was the only city posting a double-digit negative annual return, with -14.5%. However, this was down from the -17% annual decline recorded in April.
‘We have observed two consecutive months of increasing home prices and overall improvements in monthly and annual returns,’ says David M. Blitzer, chairman of the Index Committee at S&P Dow Jones Indices. ‘However, we need to remember that spring and early summer are seasonally strong buying months, so this trend must continue throughout the summer and into the fall.’
Blitzer adds that although the housing market is showing signs of increased stability, it is too early to declare a full recovery. ‘We are definitely in a wait-and-see mode for the next few months,’ he says.