The S&P/Case-Shiller home price index for April posted its largest ever monthly gains. The 20-city composite rose 12.1% year over year, more than the consensus estimate for a gain of 10.9%,and above the March increase of 8.1%. The 10-city index rose 11.6% year over year in April.
On a month-over-month basis, April prices were up 2.6% on the 10-city composite index and 2.5% on the 20-city composite. From their peaks in June and July 2006, both the 10- and 20-city composites are down about 26% to 27% through April.
The chairman of the S&P index committee said:
Last week’s comments from the Fed and the resulting sharp increase in Treasury yields sparked fears that rising mortgage rates will damage the housing rebound. Home buyers have survived rising mortgage rates in the past, often by shifting from fixed rate to adjustable rate loans. In the housing boom, bust and recovery, banks’ credit quality standards were more important than the level of mortgage rates.
San Francisco leads the recovery in house prices, up 23.9% year over year, and every metropolitan area in the 20-city composite posted a positive year-over-year change in April. Las Vegas (22.3%), Phoenix (21.5%) and Atlanta (20.8%) trailed San Francisco in price recovery.
On a month-over-month basis, every metropolitan area posted a gain, with San Francisco seeing a 4.9% jump, followed by Atlanta (3.8%), San Diego (3.7%) and Los Angeles (3.4%).
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