Home prices in major U.S. metropolitan areas rose by more than anticipated in the month of May, according to a report released by Standard & Poor's on Tuesday.
The report showed that the S&P/Case-Shiller 20-City Composite Home Price Index rose by 2.2 percent in May following a 1.3 percent increase in April. Economists had expected the index to increase by 1.2 percent.
On a seasonally adjusted basis, the 20-City Composite Home Price Index rose by a more modest 0.9 percent but still exceeded estimates for a 0.5 percent increase.
David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices, said, "With May's data, we saw a continuing trend of rising home prices for the spring."
"We have observed two consecutive months of increasing home prices and overall improvements in monthly and annual returns," he added. "However, we need to remember that spring and early summer are seasonally strong buying months so this trend must continue throughout the summer and into the fall."
Compared to the same month a year-ago, the 20-City Composite Home Price Index fell 0.7 percent on an unadjusted basis compared to expectations for a 1.4 percent drop.
by RTT Staff Writer
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