Home price Appreciation

June 30th, 2015 9:31 am | by John Jansen |

Via Millan Mullraine at TDSecurities:

US home prices rose in April at its slowest pace in 8 months, gaining 0.3% m/m following the upwardly revised 1.0% m/m advance the month before. This was a weaker pace of home price appreciation than the 0.8% m/m rise expected by the markets, though it marked the 9th consecutive monthly gain in this indicator. Prices were higher in 11 of the 20 cities covered, which is a far weaker performance than the previous month when all 20 cities recorded price gains. On a year ago basis, the pace of home price appreciation decelerated, falling from 5.0% y/y to 4.95 y/y. The 3-month annulled pace also slowed, falling to 10.2% from 12.6%. On the whole, this report reflects some weakening in home price momentum which could be the result of diminished pricing power for sellers as supply (which has been a key constraint in home sales activity) begins to rise. Overall, we remain constructive on the housing sector and we see the moderation in price gains as a healthy re-balancing in the housing market dynamics.

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