Home price growth in major US metropolitan areas unexpectedly slowed in the month of June, according to a report released by Standard & Poor’s on Tuesday.
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The S&P/Case-Shiller U.S. National Home Price Index, which measures all nine U.S. census divisions, was also up 5.1 percent in June from the previous year. The growth seen month-over-month after seasonal adjustment marked flat results from May to June.
On a non-seasonally adjusted basis, the 20-City Home Price Index climbed by 0.8 percent in June following a 0.9 percent increase in the previous month.
Portland, Oregon, led the gainers with price appreciation of 12.6 percent.
David Blitzer, managing director at S&P Dow Jones Indices, said overall the United States housing sector, a key part of the economy, is “in good shape”.
Blitzer said sales of existing homes are at running at about 5.5 million units annually with inventory levels under five months, while sales of new single-family homes are at the highest rate since November 2007. The 20-city composite has had price gains slow for three months in a row as the growth spurt earlier in the recovery has lost some of its momentum.
“Overall, residential real estate and housing is in good shape”, Blitzer said, adding that other sectors of the US economy such as business capital spending continue to show weakness”.
Blitzer noted that even in the slower Northeast home prices are climbing faster than inflation.
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The pace of gains in U.S. home prices slowed June but solid demand and tight supplies should keep a floor on the market, analysts said Tuesday. Portland, Seattle, and OR have posted the largest year-over-year gains for five consecutive months.
