United States: Housing prices remain healthy in April
June 28, 2016
The S&P/Case-Shiller 20-city home composite index jumped 1.1% in April over the previous month, which was the fastest monthly increase in a year. The print followed the 1.0% increase recorded in March and overshot the 0.8% rise the markets had expected. When adjusted for seasonal factors, the index rose 0.5% over the previous month (March: +0.8% month-on-month).
On an annual basis, home prices rose 5.4% in April, which was slightly down from the 5.5% increase recorded in March. In a statement, S&P commented that Portland, Seattle and Denver continue to be the cities with the greatest increases.
According to S&P, “the home price increases reflect the low unemployment rate, low mortgage interest rates, and consumers’ generally positive outlook. One result is that an increasing number of cities have surpassed the high prices seen before the Great Recession. Currently, seven cities – Denver, Dallas, Portland OR, San Francisco, Seattle, Charlotte, and Boston – are setting new highs.”
Author: Ricardo Aceves, Senior Economist