US home price growth slows in AprilTuesday 24 June 2014 15.36
US home price gains slowed sharply in April, providing fresh evidence of a weakness in the housing market recovery, the S&P Case-Shiller index showed.
The 20-city index of home prices rose at an annual rate of 10.8% in April, following the 12.4% growth rate posted for March. Month-over-month, the index rose 1.1%.
The slowdown was seen in 19 of the 20 cities, with three California cities - Los Angeles, San Diego and San Francisco - posting hefty price drops of about three percentage points, year-on-year.
Boston was the only city where the price gains picked up pace.
The slowdown was stronger than expected. US analysts on average estimated the 20-city index would post an annual pace of 11.6%.
David Blitzer, chairman of the index committee, said that although the annual gains weakened, the month-over-month numbers were strong.
Five cities - Atlanta, Boston, Chicago, San Francisco and Seattle - had monthly gains of at least 2%.
"Near-term economic factors favor further gains in housing: mortgage rates are lower than a year ago, the Fed is expected to keep interest rates steady until mid-2015 and the labour market is improving," he said.
"The question is whether housing will bounce back before the Fed begins to tighten some time next year," he added.