Real Estate prices in major US cities rose for the second straight month in May, propped up by a flurry of spring buyers. But after adjusting for such seasonal factors, prices fell in a majority of markets.
The Standard & Poor’s/Case-Shiller home-price index released on Tuesday showed that prices rose in 16 of the 20 cities tracked.
Boston posted the biggest monthly increase, followed closely by Minneapolis and Washington. Prices in three metro areas hit the hardest by the housing crisis – Detroit, Las Vegas and Tampa (Florida) – fell to their lowest points since the recession began. Prices in Phoenix were unchanged.
The 20-city rose one per cent in May from April. The index measures prices compared with those in January 2000. It then provides a three-month average. The May data is the latest available.
The positive data came with a caveat: The figures weren’t adjusted for the buying that normally picks up in spring.
David M. Blitzer, chairman of S&P’s index committee, said the rise in the index was due to a ’seasonal period of stronger demand for houses’ so the increases are ‘to be expected.’