To absolutely no one’s surprise, home prices increased once again in May, and even showed double-digit gains in some markets on the West Coast, and increasing at two to three times the rate of inflation across the U.S., according to the latest report from S&P Dow Jones Indices and CoreLogic.
Home prices increased 6.4% in May, the same annual increase that was seen the month before, according to the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, which covers all nine census divisions.
The 10-City Composite posed an annual increase of 6.1% in May, down from April’s increase of 6.4%, and the 20-City Composite increased by 6.5%, down from the increase of 6.7% the previous month.
The West Coast saw the highest annual gains out of all the top 20 cities. Seattle, Las Vegas and San Francisco increased the most with annual home price gains of 13.6%, 12.6% and 10.9% respectively.
Seven of the nation’s top 20 cities reported a higher increase in the year ending in May than the year ending in April.
“Home prices continue to rack up gains two to three times greater than the inflation rate,” said David Blitzer, S&P Dow Jones Indices managing director and chairman of the Index Committee. “The year-over-year increases in the S&P CoreLogic Case-Shiller National Index have topped 5% every month since August 2016.”
“Unlike the boom-bust period surrounding the financial crisis, price gains are consistent across the 20 cities tracked in the release; currently, the range of the largest to smallest price change is 10 percentage points compared to a 20 percentage point range since 2001, and a 25 percentage point range between 2006 and 2009,” Blitzer said. “Not only are prices rising consistently, they are doing so across the country.”