Home Prices Slow for April

There is new data for the month of April regarding home sales. The home-price growth slowed for the first time in months, and if the trend continues it may mean markets are beginning to lose steam.

The S&P, according to CoreLogic Case-Shiller Indices, rose 5.5% on the year, which ends in April. It was also down from a revised 5.6% year-over-year increase which was reported in March.

Back in September home prices were setting records, and the pace of their gross continue to rise at a healthy rate.

Across the 10 city indexed, there were chains of 4.9% throughout the year, but was still down 5.2% since March. Meanwhile, the 20 city index Rose 5.7% but still down 5.9% from the prior month. 

Economists from the wall street journal were expecting a rise of 6% in April, which is quite a bit different from what they had planned. The high demand in the market has pushed the accelerated gains to new heights, all of which is fueled by rising wages and young people looking to buy homes. The one problem economists fear is that Price growth that continues to outpace income growth will not sustain itself.

They are worried if home price gains gently slow, or if they crash and take the Eckman bony down with them. They are not expecting a disastrous crash.

The price of homes are still growing quickly but are slowing nonetheless, and growing faster than incomes. The good news is that home price growth is still less than half of what it was during the pre-crisis in 2005, at 14%. 

On the other hand there are several markets that are beginning to see double-digit (or near double-digit) growth. The markets are Seattle, Portland, Dallas, and Denver. 

Of the top 20 cities, seven reported greater year over year price increases for April.

Month over month, US index saw a chain of 0.9% in April which was not seasonally adjusted. The tin city rose 0.8%, and the 20 city index saw a decrease of 0.9% from March to April.

After the seasonal adjustments were made the national index rose 0.2% month over month, and the 10 city saw the same rate of growth. The 20 city index rose 0.3%. Again, after the seasonal adjustment 13 of the 20 cities had prices rising in April.

For May the sale of previously owned homes saw an increase which tells us that the demand is still there despite a lack of homes for sale. Existing home sales rose 1.1% from April to May, and once seasonally adjusted it rose at the annual rate of 5.62 million according to the National Association of Realtors

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