An Increasing Number Of US Cities Are Reporting Declining Home Prices

Business Insider

Earlier today, we saw that the pace of home price growth slowed in April. According to the new Case-Shiller report, the index of 20 cities was up just 0.19% month-over-month and 10.82% year-over-year.

But one thing jumps out from the report: a growing number of cities are reporting price declines. From Gennadiy Goldberg at TD Securities: 

"The data shows a notable decoupling of home price gains across the 20 cities surveyed by the index. Just 15 cities saw home prices appreciate in April as 5 cities saw declines – the smallest number of cities showing monthly home price appreciation since February 2012. 

"While we suspect that the S&P/CS index could still regain some of its footing in the coming months as housing market activity re-accelerates, dissipating positive base effects should continue to weigh on the annual pace of home price gains. In fact, we look for home price gains to slow to a more manageable 6-8% y/y pace by the end of 2014."

On a seasonally-adjusted month-over-month basis home prices were down in five metro areas: Cleveland (-0.6%), Washington (-0.4%), New York (-0.3%), San Diego (-0.3%), Atlanta (-0.03%).

Here's the chart from TD Securities highlighting how many of the 20 cities see monthly price increases and decreases.

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TD Securities/Business Insider



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