Although housing prices rose month-over-month from April to May, they fell year-over-year, according to S&P/Case-Shiller.
Data through May 2012 for the S&P/Case-Shiller Home Price Indices showed that average home prices increased by 2.2% in May over April for both the 10- and 20-City Composites. With May’s data, we found that home prices fell annually by 1.0% for the 10-City Composite and by 0.7% for the 20-City Composite versus May 2011.
The cities that posted the worst year-over-year drops in May were Atlanta, where prices fell 14.5%, and Las Vegas where they fell 3.2%. Las Vegas is generally considered the worst large housing market in the United States.
Year-over-year in May, prices rose 11.5% in Phoenix, another hard-hit market from the 2006 peak, and in Minneapolis they were up 4.5%.
In further comments, Case-Shiller noted:
“With May’s data, we saw a continuing trend of rising home prices for the spring,” says David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices. “On a monthly basis, all 20 cities and both Composites posted positive returns and 17 of those cities saw those rates of change increase compared to what was observed for April. Seventeen of the 20 cities and both Composites also saw improved annual rates of return. We have observed two consecutive months of increasing home prices and overall improvements in monthly and annual returns; 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.
“The 10- and 20-City Composites were each up 2.2% for the month and recorded respective annual rates of decline of 1.0% and 0.7%, compared to May 2011. While still negative, these annual changes are the best we’ve since in at least 18 months.”
Douglas A. McIntyre