While Standard & Poor's released a report Tuesday morning showing that its reading on home prices in 20 major metropolitan areas increased by more than expected in June, the data was likely skewed by the homebuyer tax credit.
The report showed that the S&P/Case-Shiller 20-City Composite Home Price Index increased at an annual rate of 4.2 percent in June. The growth represents a slowdown from the 4.6 percent increase seen in May but still exceeded economist estimates for a 3.1 percent increase.
S&P noted that the deceleration in the pace of price growth comes on the heels of 16 consecutivemonths of improvement, which it said points to a possible deceleration in home price returns.
On a monthly basis, the 20-City Composite Home Price Index rose by 1.0 percent in June following a 1.3 percent increase in May. Seventeen of the twenty metro areas saw monthly price growth.
"While the numbers are upbeat, other more recent data on home sales and mortgages point to fewer gains ahead," said David M. Blitzer, Chairman of the Index Committee at Standard & Poor's.
However, Blitzer added, "Even with concerns about near term developments, we recognize that the housing market is in better shape than this time last year."
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.