Index Finds that Nine Cities Report Faster Home Price Increase for April

Home prices have continued to rise across the country in April 2015 and for the last 12 months at a moderate pace, according to the results from the S&P/Case-Shiller Home Price Indices released today.  The Case Shiller Index, which covers all nine U.S. census divisions, posted a 4.2 percent annual increase in April 2015, compared to a slightly higher 4.3 percent increase in March 2015.

The index also found that nine cities reported faster price increases in the year ended April 2015 over the year ended March 2015, while 11 cities’ annual price gains decreased.

“Home prices continue to rise across the country, but the pace is not accelerating,” said David M. Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices. “Moreover, consumer expectations are consistent with the current pace of price increases.”

Compared to last month, the report determined that both Composites and the National index showed slightly lower year-over-year gains. The 10-City Composite increased 4.6 percent year-over-year, while the 20-City Composite increased 4.9 percent during the same time period.

The National Association of Home Builders (NAHB) also commented on the recent release of the S&P Indices and how it affects the market on their "Eye on Housing" blog.

"House prices have been recovering since reaching the bottom of the downturn in 2012," said Jing Fu, senior economist at NAHB. "Both the new and existing single-family homes’ median sale prices are presented along with the home price index. All three indicators tell a similar story of rapid acceleration during the housing boom, sharp declines during the bust, and steady recovery since 2012. The Case-Shiller index also shows volatile monthly growth rates and a deceleration in price growth since 2013."

On a year-over-year basis, Denver and San Francisco reported the highest gains with price increases of 10.3 percent and 10 percent, respectively, over the last 12 months, according to the indices. Dallas reported the second-highest gains at 8.8 percent to round out the top three cities.

Before seasonal adjustment, the National index increased 1.1 percent in April, S&P noted. The 10-City and 20-City Composites posted gains of 1 percent and 1.1 percent month-over-month. After seasonal adjustment, the National index did not change. The 10-and 20-city composites were up 0.3 percent and 0.4 percent. All 20 cities reported increases in April before seasonal adjustment, but after seasonal adjustment, 12 were up and eight were down.

“Recent housing data is positive,” Blitzer said. “Sales of new and existing homes are rising in recent reports and construction of new homes enjoyed strong gains in May. At the same time, the proportion of new construction that is apartments rather than single family homes remains high. In the past year, 34 percent of housing starts were apartments, compared to 22 percent on average since 1975. One aspect of this may be condominiums. Separately, S&P Dow Jones Indices reports the S&P/Case-Shiller Condo Price indices for Los Angeles, San Francisco, Chicago, Boston and New York. In all but LA, condo prices are rising faster than single family homes.”

Click here to view the complete S&P/Case-Shiller Home Price Indices.