Single-Family Home Price Gains Settling Into 4–5 Percent Pace

The 10-City and National single-family home price indices in May increased by 4.7 percent and 4.4 percent year-over-year, respectively, according to the S&P Home Price Indices report released July 28.

Both figures were slightly higher than in April, which saw the 10-City Composite increase 4.6 percent and the National Home Price Index increase 4.2 percent.

The 20-City Composite in May was 4.94 percent year-over-year, a marginally lower gain than the 4.95 percent reported in April.

Month-over-month in May, the National index remained unchanged from April, while the 10-City and 20-City Composites both decreased 0.2 percent.

“Nationally, single family home price increases have settled into a steady 4 percent to 5 percent annual pace following the double-digit bubbly pattern of 2013,” said David Blitzer, the managing director and chairman of the Index Committee at S&P Dow Jones, in a statement. “Over the next two years or so, the rate of home price increases is more likely to slow than to accelerate.”