WASHINGTON (AP) – U.S home prices rose at a slower pace in May, a sign that many would-be buyers are finding properties unaffordable.
The S&P CoreLogic Case-Shiller 20-city home price index increased 2.4% in May from a year earlier. That marked a slight deceleration from the 2.5% year-over-year gain in April.
The sluggish price growth stems largely from the most expensive markets, where years of price growth have undermined affordability. Home prices rose less than 2% in Los Angeles, New York, San Diego and San Francisco. Prices in the typically hot market of Seattle fell 1.2% from a year ago, a sharp reversal from an annualized gain of 13.6% in May 2018.
There are signs in the National Association of Realtors report on existing home sales that lower mortgage rates might lift prices.
WASHINGTON (AP) – More Americans signed contracts to purchase homes in June, marking the second straight month of growth.
The National Association of Realtors said Tuesday that its pending home sales index rose 2.8% to 108.3 in June, up from 105.4 in May. Pending home sales are up 1.6% from their pace a year ago, snapping a 17-month streak of annual declines.
Sales have likely been helped by lower interest rates, which are on average under 4% on a 30-year mortgage.
All four regions saw contracts up from May and last year, with the West seeing the biggest jump in June at 5.4%. The West is also up the most year-over-year with gains of 2.5%.
Pending sales is a measure of home purchases that are usually completed a month or two later.
