Dallas-area home prices were up 8.4 percent in May from a year earlier.
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Nationally, single-family home prices have settled into an annual 4 to 5 percent pace of increase, moderating after the “double-digit bubbly pattern of 2013”, according to S&P/Case-Shiller.
Denver, San Francisco, and Dallas experienced the biggest year-over-year home appreciation among the 20 cities with price increases of 10.0 percent, 9.7 percent and 8.4 percent, respectively.
With home prices in major U.S. metropolitan areas unexpectedly showing a monthly decrease in May, Standard & Poor’s released a report on Tuesday showing that the annual rate of price growth during the month came in well below economist estimates.
“Over the next two years or so, the rate of home price increases is more likely to slow than to accelerate”. The S&P/Case-Shiller index is based on a three-month average, which means the May figure was also influenced by transactions in April and March. Washington showed the smallest increase at 1.3 percent. Economists expect pending sales to rise by 1.0 percent.
Housing has been making gradual progress this year, with steady job gains fueling the appetite for and wherewithal to buy homes.
In a preview of the economic data this week, Bank of America Merrill Lynch wrote: “We are forecasting a 0.2% mum [seasonally adjusted] increase in the national S&P Case Shiller index, leaving the yoy rate to inch up to 4.5%”. Still, the improvement has been stop-and-go.
Yet the supply of available homes hasn’t kept up with rising sales.
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North Texas home prices are now a record levels.
