July 25, 2017 – The 20-city S&P/Case-Shiller index is a measure of existing home values across 20 metropolitan areas throughout the U.S. Home values have a broad impact on the economy, including the housing and consumer sectors.
The 20-city Case-Shiller index rose a seasonally adjusted 0.1% in May, below the consensus of 0.3% but above April’s downwardly revised -0.2%. For the second month in a row the weakness came from 6 of 20 cities with hefty declines for New York, Boston, and Chicago. Year-over-year prices are up 5.7%, down from an upwardly revised rate of 5.8% in April.
Although the S&P/Case-Shiller index came in below expectations, the 0.1% increase still suggests an increase in existing home values. Rising home values leads to an increase in new construction; in return stimulating the economy.