In May national home prices rose slowly, while the pace of gains varied by market.
The Case-Shiller U.S. National Home Price Index, reported by S&P Dow Jones Indices, rose at a seasonally adjusted annual growth rate of 2.6% in May, the slowest rate of growth in the past 11 months. After reaching 8.7% in November 2016, house price appreciation has been decelerating and averaged 4.8% over the last six months.
The Home Price Index from the Federal Housing Finance Agency (FHFA) rose at a seasonally adjusted annual rate of 4.7% in May, following the 8.0% increase in April, confirming the deceleration in home prices.
Figure 2 shows the annual growth rate of home prices for 20 major U.S. metropolitan areas. In May local home price varied greatly and its annual growth rates ranged from -6.8% to 11.7%.
Among the 20 metro areas, Seattle had the highest home price appreciation of 11.7%, followed by Las Vegas with 7.5% and Portland with a 6.3% increase. Fourteen out of the 20 metro areas had home price appreciation. Home prices depreciated in the remaining six metro areas and they were: Atlanta (-0.8%), Cleveland (-1.3%), San Francisco (-3.0%), Boston (-4.2%), Chicago (-4.9%) and New York (-6.8%). Moreover, half of the 20 metro areas had higher home price appreciation than the national level of 2.6%.