Home prices across the U.S. slowed sharply to a single-digit pace in May on a year-over-year basis, said the S&P/Case-Shiller Home Price Index survey released Tuesday. The 20-city price index increased 9.3% from May 2013 to May 2014. Portland beat the averages, rising 10.01% . On a month over month basis the 20-city composite increased 1.1% from April 2014 to May 2014, and Portland increased 1.19% from April to May.
Portland has risen 29.53% since the low-point in March 2012. Increases in home prices have eroded housing affordability both nationally and in Portland. Portland home prices, however, are still below the four percent long-term trend line, so fears of another bubble seem misplaced. Assuming that mortgage rates remain low we think Portland home prices will rise five to eight percent over the next twelve months.
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