Home Prices Make Biggest Yearly Jump Since 2006 - NBC Right Now/KNDO/KNDU Tri-Cities, Yakima, WA |

Home Prices Make Biggest Yearly Jump Since 2006

Posted: Updated:

NBCNEWS.COM - U.S. single-family home prices rose in May, the biggest annual jump since 2006, a closely watched survey showed on Tuesday.

The S&P/Case Shiller composite index of 20 metropolitan areas gained 1 percent on a seasonally adjusted basis, shy of economists' forecast for a 1.5 percent increase. That marked a slower pace from April's 1.7 percent rise.

On a non-adjusted basis, prices rose 2.4 percent.

Compared to May 2012, prices also fell short of expectations, rising 12.2 percent from a year earlier. Still, it was the biggest annual gain since March 2006, matching a record set in April.

The report was unlikely to alter economists' views that the housing sector continues to recover, making it a bright spot for the economy.

"The cities that bubbled in the past are bubbling again," Robert Shiller, economist and co-founder of the S&P/Case-Shiller Home Price Index, told "Squawk on the Street" on Tuesday.

"To me, it seems to be at least partly psychological. They've seen it before and they're ready for it again … It seems like California has historically been the most bubbly state in the country and it continues."

Shiller said that the new factor emerging in the numbers is the effect of institutional investors on home prices. "They've learned about momentum and they're saying 'hey, this is it.' The housing market is showing a lot of upward momentum. And you know, I think they're probably right, at least for the short term."

"For a flipper who can get out in about a year, it seems to be a fairly safe bet," he added.

All 20 cities rose on a yearly basis, led by a 24.5 percent surge in San Francisco.

HD DOPPLER 6i
/
  • National NewsMore>>

  • Protests, rallies ensue during immigration situation

    Protests, rallies ensue during immigration situation

    Saturday, June 23 2018 9:25 PM EDT2018-06-24 01:25:22 GMT
    MGN ImageMGN Image

    McALLEN (AP) - The Latest on the separation of immigrant children from their parents following President Donald Trump's order allowing them to remain with their parents.

    More >>

    McALLEN (AP) - The Latest on the separation of immigrant children from their parents following President Donald Trump's order allowing them to remain with their parents.

    More >>
  • Estimated 230,000 gallons of oil spilled in Iowa train derailment

    Estimated 230,000 gallons of oil spilled in Iowa train derailment

    Saturday, June 23 2018 6:23 PM EDT2018-06-23 22:23:02 GMT
    Courtesy: Sioux County Sheriff - FacebookCourtesy: Sioux County Sheriff - Facebook

    DOON, Iowa (AP) - A railroad official says 14 of 32 derailed oil tanker cars in the northwest corner of Iowa dumped an estimated 230,000 gallons (870,619 liters) of crude oil into floodwaters, with some making its way to nearby rivers. BNSF spokesman Andy Williams confirmed the details Saturday. 

    More >>

    DOON, Iowa (AP) - A railroad official says 14 of 32 derailed oil tanker cars in the northwest corner of Iowa dumped an estimated 230,000 gallons (870,619 liters) of crude oil into floodwaters, with some making its way to nearby rivers. BNSF spokesman Andy Williams confirmed the details Saturday. 

    More >>
  • Police: Meridian officer shoots, kills man who pulled out handgun

    Police: Meridian officer shoots, kills man who pulled out handgun

    Saturday, June 23 2018 6:14 PM EDT2018-06-23 22:14:26 GMT

    MERIDIAN, Idaho (AP) - Authorities in southwestern Idaho say a Meridian police officer shot and killed a man who said he wasn't going back to jail and pulled a handgun from his waistband. Meridian police say officers at about 12:20 p.m. Saturday responded to a report of a domestic disturbance involving a knife.

    More >>

    MERIDIAN, Idaho (AP) - Authorities in southwestern Idaho say a Meridian police officer shot and killed a man who said he wasn't going back to jail and pulled a handgun from his waistband. Meridian police say officers at about 12:20 p.m. Saturday responded to a report of a domestic disturbance involving a knife.

    More >>