The 10-city and 20-city index showed a 19.7% year-to-year increase in May, a slight drop. Tampa (up 36%) topped the list for a third month with Miami (34%) at No. 2.
NEW YORK – Home prices continued their upward spiral in May 2022, according to the latest S&P CoreLogic Case-Shiller Indices (S&P DJI).
The index that covers all nine U.S. census divisions reported a 19.7% annual gain in May, a drop from 20.6% the month before.
The index’s 10-City Composite increase for May was 19.0%, down from 19.6% in April. The 20-City Composite posted a 20.5% year-over-year gain, down from 21.2% in May.
Tampa, Miami and Dallas saw the highest year-over-year gains among the 20 cities included in the index. Tampa led the way with a 36.1% year-over-year price increase, followed by Miami with a 34.0% increase; Dallas ranked third with a 30.8% increase.
In the 20-city index, four cities (20%) reported higher price increases in May than in April.
Before seasonal adjustment, the U.S. National Index posted a 1.5% month-over-month increase in May, while the 10-City and 20-City Composites posted increases of 1.4% and 1.5%, respectively.
After seasonal adjustment, the U.S. National Index posted a month-over-month increase of 1.0%, and the 10-City and 20-City Composites both posted increases of 1.3%.
In May, all 20 cities reported increases before and after seasonal adjustments. A seasonal adjustment allows researchers to compare prices in historically slow months to historically busier months.
“Price gains decelerated slightly from very high levels,” says Craig J. Lazzara, managing director at S&P DJI. “Despite this deceleration, growth rates are still extremely robust, with all three composites at or above the 98th percentile historically.
Lazzara says price increases remain very high historically almost across the board, but “at the city level we also see evidence of deceleration. Price gains for May exceeded those for April in only four cities. As recently as February of this year, all 20 cities were accelerating.”
The S&P DJI reports home prices two months earlier than the report’s publication. As a result, Lazzara hesitates to predict what will happen over the next few months.
“We’ve noted previously that mortgage financing has become more expensive as the Federal Reserve ratchets up interest rates, a process that was ongoing as our May data were gathered,” he says. And greater financing challenges “may not support extraordinary home price growth for much longer.”
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