S&P Case Shiller: Home Prices Rose in May

But prices slipped slightly compared to last year


Homeowners looking to put their homes on the market received some good news this morning. Standard & Poor’s Case-Shiller home-price indexes for 10-cities and 20-cities each jumped 2.2% in May compared to April.

That marked the second consecutive monthly improvement in the indexes. Home prices moved upward by 1.3% in April after seven straight monthly declines, The Wall Street Journal noted.

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Adjusted for seasonal variations, the 10-city and 20-city indexes rose 0.9%. Compared to 2011, however, the 10-city index fell by 1%, while the 20-city index dipped 0.7%.

In May, Phoenix reported a 12% increase in home prices compared to 2011, while Atlanta sounded a sour note, with prices dropping 15% compared to last year. Overall, home prices remain roughly 33% below their 2006 highs.

S&P officials noted that spring and summer months usually see higher home sales activity. While prices appear to be stabilizing, the rising trend would have to continue into the fall before a sustained housing price recovery could be declared.

The news did nothing for homebuilder stocks, which may already be overbought. Ryland (NYSE:RYL) and Toll Brothers (NYSE:TOL) saw their shares dip by about 1%, while D.R. Horton (NYSE:DHI) shares fell about 2% in early Tuesday trading.

Article printed from InvestorPlace Media, http://investorplace.com/2012/07/sp-case-shiller-home-prices-rose-in-may/.

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