Home Prices Edge Higher in April, Steady in May: Case-Shiller

U.S. single-family home prices were unchanged in May on a monthly basis and were revised to show an increase in April, though prices were still down compared to a year earlier, a closely watched survey said on Tuesday.

The S&P/Case Shiller composite index of home prices in 20 metropolitan areas held steady on a seasonally adjusted basis and in line with economists' expectations, according to a Reuters poll.

The index was revised to show a gain of 0.4 percent in April, which was originally reported as a decrease of 0.1 percent.

On a non-seasonally adjusted basis, the index rose 1 percent, the second month of gains in a row, the report said.

"This is a seasonal period of stronger demand for houses, so monthly price increases are to be expected," David Blitzer, chairman of the index

committee at Standard & Poor's, said in a statement. "The concern is that much of the monthly gains are only seasonal."

Prices in the 20 cities fell 4.5 percent year-over-year, which was also in line with forecasts.

"While we saw some improvement on a monthly basis, the overwhelming likelihood is that we've not seen a bottom in housing yet—and for good reason," said Michael Woolfolk, senior currency strategist at BNY Mellon. "Financing for mortgages is not there yet and bank appetite to extend credit has yet to recover."