US Home Prices Rise 16.6% in May... Highest Level in 30 Years

[Asia Economy New York=Correspondent Baek Jong-min] The rise in U.S. housing prices shows no signs of stopping.

The S&P CoreLogic Case-Shiller National Home Price Index for May, released on the 27th (local time), rose 16.61% compared to the same month last year. The 16.6% increase is the highest rate in the past 30 years.

The S&P CoreLogic Case-Shiller Home Price Index surged 14.8% on an annualized basis in April, followed by an additional 2.14% increase in just one month.

The increase rate in the 20 major cities was even higher, reaching 17%. This exceeded the market expectation of a 16.4% rise. The April increase rate was 15%.

A major foreign news outlet explained that the home price increase rate in the 20 major cities this year is the highest in 16 years.

Phoenix, San Diego, and Seattle showed the highest increase rates. Phoenix's increase rate reached 25.9%. San Diego rose 24.7%, and Seattle increased by 23.4%.

S&P stated in its April forecast that the demand shift from big cities to suburban homes was very unusual, but the situation in May suggests that this phenomenon may become a long-term trend.