Home prices fall in May

Home prices fell more than expected in May, according to the S&P/Case-Shiller home price index.

Prices fell 0.2% month-on-month on a seasonally adjusted basis, and rose 4.9% year-over-year.

Economists had estimated that home prices rose 0.3% month-over-month, unchanged from April, and climbed 5.6% year-on-year, according to Bloomberg.

Prices rose 1.1% month-over-month when not seasonally adjusted. In the release, S&P Dow Jones Indices' David Blitzer said: "As home prices continue rising, they are sending more upbeat signals than other housing market indicators."

"Nationally, single family home price increases have settled into a steady 4%-5% annual pace following the double-digit bubbly pattern of 2013. Over the next two years or so, the rate of home price increases is more likely to slow than to accelerate. Prices are increasing about twice as fast as inflation or wages."

Blitzer noted that first time homebuying is still weak.

More to come ...