Average home prices increased 1.3 percent during the month of April from March, according to the S&P/Case-Shiller Home Price Indices released today. The most recent readings for the S&P's 10-city and 20-city composites reversed a seven-month string of declines.
On an annual basis, though, home prices are still falling. April's data indicate that prices fell by 2.2 percent for the 10-city composite and by 1.9 percent for the 20-city composite versus April 2011. While still negative, the most recent annual readings marked an improvement over the annual declines of 2.9 percent for the 10-city composite and 2.6 percent for the 20-city composite recorded in March.
On a monthly basis, 19 of the 20 metropolitan areas saw prices rise in April over March; Detroit was the only city that saw prices fall, down 3.6 percent. In addition, 18 of the 20 metropolitan areas saw better annual rates of return.
"It has been a long time since we enjoyed such broad-based gains," said David M. Blitzer, chairman of the Index Committee at S&P Indices. "While one month does not make a trend, particularly during seasonally strong buying months, the combination of rising positive monthly index levels and improving annual returns is a good sign."
