Home prices are up in the US, but NYC sees weak growth

Home prices in the U.S. continued to climb in May, but New York City and other cities that thrived in the post-recession months are seeing far less growth.

Over a 12-month period ending in May, the S&P/Case-Shiller Home Price Index rose 5 percent for the entire nation, the Wall Street Journal reported. But price growth in New York City slowed from April to May, increasing by only 0.3 percent. Aside from San Francisco, which only saw a 0.1 percent jump in home prices, New York saw the smallest increase of the 20 cities surveyed by S&P Dow Jones Indices. For the year ending in May, New York only saw a 2 percent increase in home prices, the smallest increase of the 20 cities.

“When home prices began to recover, New York and Washington saw steady price growth,” David Blitzer, managing director at S&P Dow Jones, said in a statement. “Now both are among the weakest areas in the country.”

Meanwhile, the hottest markets included Portland, Ore., which saw a 12.5 percent year-over-year increase; Seattle, which experienced a 10.7 percent price increase; and Denver, which had a 9.5 percent increase. [WSJ] — Kathryn Brenzel