In yet another sign that the housing recovery is slowing down, the 14-month streak of double-digit, year-over-year jumps in home prices finally ended in May, data from S&P/Case-Shiller released Tuesday shows.
The 10-City Composite Index rose 9.4% year-over-year while the 20-City measure climbed 9.3%. That pace is significantly lower than the rates the indices increased in April: 10.9% and 10.8%, respectively. It is also the slowest rate since Feb. 2013.
To be clear, home prices are still rising–just not as fast as they have been. Economists like year-over-year prices because they give a better sense of the market’s overall direction than do the swings in prices from month to month (compared to April, both city indices gained 1.1%).
As of May 2014, home prices are back to their summer 2004 levels, but still about 17-18% off their summer 2006 peaks. All the cities the indices track, with the exception of Charlotte and Tampa, saw year-over-year home prices rise at slower rates than during the prior month.
“Nationally, today’s Case-Shiller data is consistent with the slow glide-path down towards a more normal housing market we’ve been experiencing for the past few months,” said Stan Humphries, Zillow’s chief economist. “But the national numbers are masking a lot of variation from city-to-city: Cleveland, for example, is performing a lot differently than the Bay Area.”