Tuesday, July 27, 2010

Home Prices Jumped in May... Test Comes Next Month

Reuters details the jump in May, but the test comes in June post-tax credit:

U.S. single-family home prices rose more than expected in May, still reflecting robust spring sales spurred by homebuyer tax credits, Standard & Poor's/Case Shiller home price indexes showed on Tuesday.

The 20-city composite price index rose 0.5 percent on a seasonally adjusted basis in May after an upwardly revised 0.6 percent gain in April, topping the 0.2 percent rise forecast in a Reuters poll.

This was the second straight monthly rise after declines in the prior two months.
Month over Month


Six Month Change



Source: S&P

Update per reader Mike Hardy:
Case-Shiller is a 3-month average, posted with a 2-month delay.

So this should read "home prices in March April and May showed some gains", and that should be placed in the context of the tax credits, and any more current data available which shows what is happening now, as it will easily predict what the C-S index looks like in October, when the C-S release includes June/July/August - post-tax-credit collapse...
See you in August?

2 comments:

  1. Case-Shiller is a 3-month average, posted with a 2-month delay.

    So this should read "home prices in March April and May showed some gains", and that should be placed in the context of the tax credits, and any more current data available which shows what is happening now, as it will easily predict what the C-S index looks like in October, when the C-S release includes June/July/August - post-tax-credit collapse...

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  2. If you subtract the $8,000 tax credit from the sale price in the past few months, home prices were probably dropping!

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