US home selling prices probably dipped in May

US month on month home price index posted 0.3% growth in previous month is expected to fall in May.

Data collected by real estate research provider CoreLogic suggest that home selling prices in the twenty metropolitan areas covered by the more widely followed S&P/Case-Shiller (SPCS) survey dipped by 0.1% in May, ending a string of monthly gains going back to last September, notes Societe Generale. 

According to Societe Generale, "Before seasonal adjustment, however, home prices likely jumped by 1.4% during the reference period, placing the latest reading of 179.6 5.25% above the level recorded in May 2014. Our projection, if accurate, would leave home prices a little over 13% below their pre-Great Recession high. Keep an eye on the breadth of reported price gains across the 20 cities canvassed by SPCS."

Following six consecutive months of universal increases, only 11 of the cities canvassed by SPCS posted gains in April.