Dive Brief:
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Despite red-hot sales of new and existing homes in May, the growth in prices cooled in April, the latest month measured by the S&P/Case-Shiller Home Price Index.
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Home prices nationwide grew by just 1.1% between March and April, and 4.2% since April 2014, according to the index. That’s slightly weaker than the updated 4.3% that prices grew year-over-year in March. The pace of price growth has been dwindling for more than a year.
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Denver and San Francisco reported the highest year-over-year gains, with price increases of 10.3% and 10%, respectively, according to the report.
Dive Insight:
Slower price growth might disappoint home sellers, but economists are calling it good news, saying prices had been rising too fast in 2013 and early 2014.
“We’ve moved from something we couldn’t sustain to something that’s a lot more reasonable,” David Blitzer, managing director of the Index Committee at S&P Dow Jones Indices, said in a statement.
In addition, escalating home prices mean fewer homebuyers — especially first-timers — can afford to purchase property.