Home prices unexpectedly fall in May
Economists had forecast that the gauge of prices in 20 major US cities climbed 0.10% month-on-month on a seasonally adjusted basis, according to Bloomberg.
Compared to the same month last year, prices rose 5.24%, not seasonally adjusted.
Prices are rising at a 5% annual rate year-on-year, and were expected to have increased by 5.52% in May. The pace is just about 3% from its all-time high.
At the same time, home sales are rising. They peaked in June at the highest annual rate since February 2007, when national home prices topped out before the housing crisis.
Buyer demand, boosted by low mortgage rates and job creation, should put off immediate concerns about the housing recovery. However, a shortage of inventory is keeping prices high and making entry-level homes less affordable.