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Home prices across a wide section of the U.S. showed a monthly increase in prices for the first time in eight months, according to data through April 2011, released by S&P Indices for its S&P/Case- Shiller1 Home Price Indices.
The 10- and 20-City Composites were up 0.8% and 0.7%, respectively, in April versus March. Both indices are lower than a year ago; the 10-City Composite fell 3.1% and the 20-City Composite is down 4.0% from April 2010 levels. Thirteen of the cities and both composites posted positive monthly changes.
Six of the 20 MSAs showed new index lows in April, though, - Charlotte, Chicago, Detroit, Las Vegas, Miami and Tampa.
"In a welcome shift from recent months, this month is better than last - April's numbers beat March," says David M. Blitzer, chairman of the Index Committee at S&P Indices. "However, the seasonally adjusted numbers show that much of the improvement reflects the beginning of the spring-summer home buying season. It is much too early to tell if this is a turning point or simply due to some warmer weather."
"Other housing statistics show the same trends. Single-family housing starts were up in May, but still well below their 2010 levels and still very close to their 30-year low. Existing home sales rose in May, but are still about 15% below last year's pace and about 35% below their 2005 pace," Blitzer said. "While foreclosures remain a large factor in most parts of the country, the S&P/Experian Consumer Credit Default indices show a small decline in the pace of new defaults since last November. Other reports confirm that banks have tightened lending standards in the past year making it harder to qualify for a mortgage despite very low interest rates."
As of April 2011, 19 of the 20 MSAs and both Composites are down compared to April 2010.
Washington D.C. continues to be the only market to post a year-over-year gain, at +4%. Minneapolis was the only city that demonstrated a double-digit annual decline, -11.1%. While 13 markets rose on a monthly basis, 16 markets saw their annual rates of change fall deeper into negative territory.
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