U.S. home prices increased 0.1% on an adjusted basis in April compared with March and increased 5.0% compared with April 2015, according to the S&P/Case-Shiller Home Price Indices.
The index’s 10-city composite increased 0.3%, on an adjusted basis, compared with March and increased 4.7% compared with April 2015. The 20-city composite increased 0.5% month over month and 5.4% year over year.
On an unadjusted basis, the national index increased 1.0% month over month. The 10-city composite increased 1.0% compared with March, and the 20-city composite posted a 1.1% increase.
After seasonal adjustment, 15 cities saw prices rise, two cities were unchanged, and three cities experienced negative monthly price changes. Portland, Ore.; Seattle; and Denver reported the highest year-over-year gains among the 20 cities.
Portland saw its home prices increase 12.3%, year over year, followed by Seattle at 10.7% and Denver with a 9.5% increase.
“The housing sector continues to turn in a strong price performance, with the S&P/Case-Shiller National Index rising at a five percent or greater annual rate for six consecutive months,” says David M. Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices. “The home price increases reflect the low unemployment rate, low mortgage interest rates and consumers’ generally positive outlook. One result is that an increasing number of cities have surpassed the high prices seen before the Great Recession. Currently, seven cities – Denver; Dallas; Portland, Ore.; San Francisco; Seattle; Charlotte, [N.C.]; and Boston – are setting new highs.
“However, the outlook is not without a lot of uncertainty and some risk,” Blitzer adds. “Last week’s vote by Great Britain to leave the European Union is the most recent political concern, while the U.S. elections in the fall raise uncertainty and will distract home buyers and investors in the coming months.
“The details in the S&P/Case-Shiller Home Price data also hint at possible softness,” he continues. “Seasonally adjusted figures in the report show that three cities saw lower prices in April compared to only one city in March. Among the 20 cities, 16 saw either declines or smaller increases in monthly prices in the seasonally adjusted numbers.”