U.S. home prices rise in May, likely to continue appreciating at current rate in 2018

Home prices in the U.S. rose at a stable rate in May. The S&P CoreLogic Case-Shiller 20-city Home Price Index rose 0.20 percent in May, consistent with consensus expectations. The price appreciation’s annual rate dropped by a two-tenths, to 6.5 percent and the three-month annualized growth rate dropped to 4.6 percent from 5.2 percent. However, even at this level, the annual rate of price appreciation continues to be healthy, noted Barclays in a research report.

April’s data saw some modest upward revisions showing annual appreciation at 6.7 percent from 6.6 percent. Overall, given the combination of solid demand and lean inventories, especially for existing homes home prices are likely to continue appreciating at the current rate for the rest of the year, stated Barclays. Delving into details, out of 20 cities, 18 recorded rises in home prices. New York and Detroit were the only exceptions.

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