Home prices rise in most major US cities
Tuesday, May 29, 2012
WASHINGTON (AP) — Home prices rose in March from February in most major U.S. cities for the first time in seven months. The increase is the latest evidence of a slow recovery taking shape in the housing market.
The Standard & Poor’s/Case-Shiller home price index shows that prices rose in 12 of the 20 cities it tracks.
Three of the weakest markets showed signs of improvement. Prices rose in Tampa and Miami. They were unchanged in Las Vegas.
The biggest month-to-month increases occurred in Phoenix, Seattle and Dallas. Prices dropped the most in Detroit, Chicago and Atlanta.
Rising prices in most cities add to other encouraging signs of a housing rebound. Sales are up, mortgage rates are at historic lows, builders are more confident and the economy is adding jobs.
Still, even though 12 of 20 cities showed gains, the weaker cities weighed on Case-Shiller’s overall price index in March. The index edged down to its lowest level since the housing bubble burst.
At the same time, price declines have slowed, and a majority of markets are rising.
“This is relatively good news,” said David Blitzer, chairman of S&P’s index committee. “We just need to see it happen in more of the cities and for many months in a row.”
In part, the increases reflect the start of the spring selling season. The month-to-month prices aren’t adjusted for seasonal factors.
The S&P/Case-Shiller monthly index covers roughly half of U.S. homes. It measures prices compared with those in January 2000 and creates a three-month moving average. The March figures are the latest available.
Over the past 12 months, prices have dropped nationally. But the declines have slowed. The 20-city index was 2.6 percent lower in March than in the same month last year. That’s better than the 3.5 percent year-over-year drop in February. And it’s the smallest annual drop since December 2010
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