Home prices pick up nationally, but gains not expected to last
Nationally, home values rose 1.3 percent in May from April, according to the Standard & Poor’s/Case-Shiller 20-city home price index. Nineteen of 20 cities showed price gains month over month, but conditions are hardly uniform across the country.
Some cities, such as San Francisco and Washington, have less area to build out and better job markets, so they have suffered less or in some cases recovered more quickly. Federal tax credits for homebuyers have also helped prop up prices in some cities. However, many economists don’t expect the price increases to last, and many predict prices will fall through the rest of the year.