Single-family home prices were unchanged on a seasonally adjusted basis in May, according to the S&P/Case-Shiller index released Tuesday.
After months of steadily declining prices, May’s index reflects good—but not great—news for the housing market. The data was in line with the expectations of economists surveyed by Reuters.
The report reflects seasonal improvements, according to David M. Blitzer, Chairman of the Index Committee at S&P Indices. “This is a seasonal period of stronger demand for houses, so monthly price increases are to be expected…. The concern is that much of the monthly gains are only seasonal,” he said.
The continually lackluster annual rates confirm Blitzer's apprehension. Washington, D.C., was the only city with a positive annual rate of change in May as prices climbed by 1.3 percent. Minneapolis fared the worst, with a decline of 11.7 percent.
“We have now seen two consecutive months of generally improving prices; however, we might have a long way to go before we see a real recovery,” Blitzer said in a statement.