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US: Small retreat in house prices that remained in the region of +20%

The U.S. housing market showed marginal easing trends for the second month in a row, with S&P’s national Case-Shiller index slowing slightly.

In particular, house prices in May were up 19.7% year-on-year, after 20.6% in April.

The 10-city composite fell to +19% y-o-y from 19.6% last month, while the 20-city index moved at +20.5% from 21.2% previously.

The largest increases in home prices were recorded in Tampa, Miami and Dallas, with annual increases of 36.1%, 34% and 30.8% respectively.

“Despite the slowdown, rates are still extremely robust,” notes Craig Lazzara, managing director of S&P DJI.

“We have already noted that mortgage financing has become more expensive as the Federal Reserve raises interest rates, a process that was continuing as our data was compiled in May. Therefore, a more challenging macroeconomic environment may not support the unusual increase for much longer of housing prices,” he added.

Source: Capital

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