Tue June 26, 2012
Home Prices Tick Up, Housing Market Recovery May Be Strengthening
Home prices rose in nearly all major U.S. cities in April from March, according to the latest S&P/Case-Shiller Home Price Indices report.
"It has been a long time since we enjoyed such broad-based gains," David Blitzer, chairman of S&P Indices' index committee, says in that report. "While one month does not make a trend ... [the news] is a good sign."
According to the data:
-- Detroit was the only one of 20 major metropolitan areas to see home prices fall in April. They dropped 3.6 percent in the Motor City from the month before.
-- The largest increase for the month was San Francisco's 3.4 percent.
-- In Phoenix, where the housing sector was hit particularly hard when the real estate bubble burst, prices were up 8.6 percent from April 2011.
-- The indices' 10-city and 20-city composite indexes were both up 1.3 percent in April from March. But, both of those broad measures were still down from a year earlier — the 10-city composite by 2.2 percent and the 20-city composite by 1.9 percent. Bloomberg News notes, however, that the 20-city index's decline from a year earlier is the smallest such year-over-year drop since November 2010.
Reuters points out that the month-to-month increase in the broader measures of home prices is the third such gain in a row, "suggesting the recovery in the housing market is gaining traction."