Case Shiller Shows First M/M Gain Since 2006

The S&P Case Shiller Index rose 0.5% in May, the index’s first monthly gain in three years.  But, the index is still down by 17.1% on a year over year basis.  14 of the 20 cities in the index experienced gains with Cleveland leading the pack with an increment of 4.1%, followed by Dallas with a 1.9% rise.  Las Vegas and Phoenix have remain the weakest cities with year over year declines of 32% and 34%, respectively.  Despite the yearly declines, May’s uptick versus April is yet another indication that the housing market has bottomed, and may soon begin a recovery.   A weak labor market and high levels of foreclosures continue to act as housings biggest risk.  But, these are currently being offset by tax incentvies, attractive mortgage rates, and relatively low home values.