S&PCoreLogic Case-Shiller Indices rose 5.6% in the 12 months ended in May, the same as the prior month
Home-price growth flattened across the U.S. in May, a sign that the rapid upward trajectory in the cost of buying a home may finally be coming to an end.
The S&PCoreLogic Case-Shiller Indices, which covers the entire nation, rose 5.6% in the 12 months ended in May, identical to a 5.6% year-over-year increase reported in April.
Home prices hit a record in September, and the pace of growth has largely accelerated steadily since then.
The 10-city index gained 4.9% over the year, down from 5% in April, and the 20-city index gained 5.7%, down from 5.8% the previous month.
Economists surveyed by The Wall Street Journal expected the 20-city index to rise 5.9% in May.
The gains were driven by growing demand thanks to rising wages and a large demographic of people entering their 30s and looking to buy homes, as well as limited supply. Economists have said they are concerned that price growth that continues to outpace income growth won’t be sustainable.
If price growth continues to slow gradually rather than crashing that would be welcome news for the housing market.
Information from The Wall Street Journal
