Home prices continued to climb around the U.S. in May, according to the latest report by S&P CoreLogic Case-Shiller Indices, which tracks the price paths of single-family homes in 20 major metropolitan areas.
Miami prices rose 5.3 percent year-over-year, nearly matching the national average of 5.6 percent. Seattle showed the biggest jump, with prices there climbing 13.3 percent. Other overperforming markets included Portland (8.9 percent), Denver (7.9 percent) and Dallas (7.8 percent).
The 5.6 percent national average remained unchanged from April.
David M. Blitzer, managing director and chairman of the index committee and S&P Dow Jones Indices, said the increase is not an indication of the kind of housing bubble that burst from overdevelopment in 2006, which caused property values to plummet. Instead, he attributed the growth in price to low supply of new construction and existing homes, which stands at four months’ worth. (Six months is the industry bellwether of a stable supply-and-demand market).
“Price increases vary across the country, unlike the earlier period when rising prices were almost universal,” Blitzer said in a statement. “The number of homes sold annually is 20 percent less today than in the earlier period and the supply is declining, not surging.”