US home prices tumble for the first time since January 2012

Home prices unexpectedly fell by 0.3 percent month-over-month in May, missing economists’ expectations for a 0.3 percent gain.

This is according to the latest S&P/Case-Shiller report on U.S. home prices. Bloomberg reports this is the first month-over-month drop since January 2012. On a year-over-year basis, prices were up 9.3 percent, which was also below the 9.9 percent gain expected.

“Home prices rose at their slowest pace since February of last year,” said S&P’s David Blitzer. “Housing has been turning in mixed economic numbers in the last few months. Prices and sales of existing homes have shown improvement while construction and sales of new homes continue to lag. At the same time, the broader economy and especially employment are showing larger improvements and substantial gains.”

“The slowdown in price appears to be indicative of the weakening in housing activity more generally, particularly after the very slow start to the spring selling season,” said TD Securities’ Millan Mulraine. “However, while we are not particularly alarmed by the surprising drop in home prices, this report adds to a growing list of housing indicators that are beginning to point in the wrong direction, which could be a early warning signal that all may not be well in this crucial segment of the economy.”

Here’s a breakdown of month-over-month change by city:

Here’s a year-over-year breakdown: