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.