August 29, 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 June, below the expectations of 0.3% increase and remained the same as May’s rate. Home prices in New York, Atlanta, Chicago, and Cleveland decreased while Miami, and Tampa continue to increase. The unadjusted index year-over-year prices are up 5.7%, unchanged from May.
An increase of 0.1% shows there is still a small increase in existing home prices. For some first-time home buyers, rising prices can scare them away into renting instead of buying a home. It is important for first-time home buyers to not be discouraged by increases in the Case-Shiller index but instead look at home prices in certain cities. One city could be keeping the index unbalanced such as Seattle with an increase of 13.4% year-over-year prices. First-time home buyers who hold back on buying a home delay putting money through the economy.