According to the twenty-city Case-Shiller Index, existing home prices rose last month by 0.7% and the ten-city index rose by 0.8%. This represents the first monthly growth in either index in eight months. Both the ten- and twenty-city indices are down 3.1% and 4.0% respectively from a year ago.
Six of the twenty MSAs (Charlotte, Chicago, Detroit, Las Vegas, Miami and Tampa) dropped to new index lows in April. However thirteen of the cities and both composite indices posted positive changes. Both the ten- and twenty-city indices remain near the crisis lows seen in March 2011 at 152.51 and 138.84 respectively.
Housing prices still face significant downward pressure from the stockpile of distressed homes as well as concerns with the overall economy. The Case-Shiller index remains well above its historical average that we quickly moved away from beginning in 1997. This suggests to many that there is still a lot of room for prices to fall.
ABA’s Chief Economist James Chessen commented, “although these numbers are encouraging, it shows that many markets have yet to hit bottom. We’re a long way away from seeing year-over-year gains for home prices.”
See the report here.