Case-Shiller Home Price Index At Low End Of Expectations

Weakness in the major cities in the Northeast and Midwest is offsetting price strength in the West making for a soft 0.2 percent rise in the Case-Shiller 20-city adjusted index for May, a result that comes in at the bottom of Econoday's consensus range.

Home prices in New York City fell 0.3 percent in the month with Detroit down 0.2 percent. Washington DC was unchanged with Chicago up only 0.1 percent. At the opposite end, Seattle continues its 1 percent monthly clips, rising 1.4 percent in May. Phoenix has also been very strong, up 0.8 percent in the month with San Francisco up 0.5 percent.

Year-on-year rates are led by Seattle at 13.6 percent with Las Vegas at 12.6 percent and San Francisco at 10.9 percent. These rates raise questions whether these are markets are in the bubble zone. On the bottom end are Washington DC at 3.1 percent, Chicago at 3.3 percent, and New York at 4.2 percent.

Total year-on-year prices came in at 6.5 percent, down 2 tenths from a revised April and below Econoday's consensus which is also the result for the monthly unadjusted gain at 0.7 percent.

Despite the strength in the West, both this report and the FHFA house price index have visibly slowed the last several reports, in line with what has proven, in contrast to all the strength in the labor market and the health in consumer spending, to be a downshift in this year's home sales.