Robust US home price gains cool slightly in April

Robust US home price gains cool slightly in April

From February to March, Miami home prices increased by 0.3 percent.

David Blitzer of S&P Dow Jones' index committee said in a release that rising prices across the country reflects that the supply of homes for sale "has barely kept pace with demand", while the inventory of new or existing homes for sale has shrunken to a four-month supply.

"If mortgage rates, now near 4 percent, rise further, this could deter more people from selling and keep pressure on inventories and prices", Blitzer said in a statement.

USA home prices were rising at an annual pace of 6.8 percent in April, according to the Federal Housing Finance Agency (FHFA), which tracks price changes in homes purchased with Freddie Mac and Fannie Mae loans.

The 10-City and 20-City composites reported 0.8 and 0.9 percent seasonally adjusted month-over-month increases, and only Cleveland, Ohio reported a negative monthly price change.

Across all nine Census divisions, US home prices rose 5.5 percent over the year.

"We're getting affordability issues in some markets that have seen an increasing rise in prices", said Scott Anderson, chief economist at Bank of the West, adding that he anticipates moderate home appreciation gains in the future. They can't. Rather, will home-price gains gently slow, or will they crash and take the economy down with them? Those gains were the highest in almost three years. "For the moment, conditions appear favorable for avoiding a crash".

Many homeowners may be reluctant to sell because prices have been rising so rapidly. This shows a slight pause in momentum when compared with previous months.

The S&P CoreLogic Case-Shiller Indices is a monthly report published on the last Tuesday of each month.

Home prices continue their steady rise in San Diego, but at less than the blistering pace of some metropolitan areas in the Pacific Northwest, amid talk of possible bubble conditions nationally.

Nevertheless, the good news is that we've come a long way from the bottom. In addition, single family home prices are lower than they were during the entire period from January 2004 - December 2008 while condo prices are lower than they were from September 2004 - January 2009. Single family home prices are up 34.1% while condo prices have recovered by 46.9%.

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