Information from The Wall Street Journal
Home prices across the U.S. slowed sharply to a single-digit pace in May on a year-over-year basis, the slowest rate since February 2013, according to a home-price report.
A survey covering 10 major U.S. cities increased 9.4% in the year ended in May, said the S&P/Case-Shiller Home Price Index survey released Tuesday. The 20-city price index increased 9.3%. That is down from a 10.8% yearly pace in April and much lower than the 9.9% expected by economists.
On an unadjusted basis, the 10-city index and the 20-city composite each increased 1.1% in May over April. Seasonally adjusted, both indexes declined 0.3%.
Past increases in home prices coupled with stagnant wage growth have recently eroded housing affordability. Home sales have struggled in the first half, and early data suggest more problems in the third quarter. The National Association of Realtors reported Monday that pending home sales fell 1.1% in June to stand 7.3% below year-ago levels.
