by Christopher Freeburn | July 31, 2012 10:48 am
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.
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.
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