WASHINGTON (AP) — U.S. home prices reached a new high in May for the sixth straight month, raising fears of another housing bubble roughly a decade after a previous one burst.
The Standard & Poor’s CoreLogic national home price index increased 5.6 percent in May, the latest data available. It is now 3.2 percent higher than its July 2006 peak.
Some analysts downplay the notion of a new bubble, and the unrelenting price increases may already be cooling sales. Other aspects of the last decade’s housing boom and bust, such as rapid sales increases and surging home building, aren’t happening now.
Much of the price gain is being driven by Seattle; Portland, Oregon; and San Francisco. All three cities have strong population growth and more rental properties than other U.S. cities, S&P says. In May, Seattle led the way with a 13.3 percent year-over-year price increase, followed by Portland with 8.9 percent, and Denver overtaking Dallas with a 7.9 percent increase. The Dallas Metropolitan Statistical Area reported a 7.8 percent year-over-year increase. Nine cities reported greater price increases in the year ending May 2017 versus the year ending April 2017.