Home Prices See Biggest Gain in 7 Years

by Christopher Freeburn | May 28, 2013 10:23 am

homeForSale Home Prices See Biggest Gain in 7 Years[1]The U.S. housing market continues to show signs of strength[2].

On Tuesday, data from the S&P/Case-Shiller index jumped 10.9% over the prior year. That marked the largest twelve-month gain since April 2006. The increase beat the 10.2% rise anticipated by economists, Bloomberg noted.

It also topped the 9.4% year-over-year gain registered by the index in February. That number was revised upward from a previously-reported increase of 9.3%.

According to the index, nationwide home prices rose 10.2% in the first quarter, compared to the same time last year. That was up from a 7.3% year-over-year increase during the fourth quarter of last year.

A combination of historically low mortgage interest rates and shrinking inventories of homes for sale are helping to drive prices higher.

The report help boost homebuilders. Ryland Group (RYL[3]) and D.R. Horton (DHI[4]) shares climbed almost 3% in Tuesday morning trading, while  (TOL[5]) rose almost 2%.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2012/07/homeForSale.jpg
  2. to show signs of strength: http://www.bloomberg.com/news/2013-05-28/home-prices-in-u-s-rise-in-year-ended-march-by-most-since-2006.html
  3. RYL: http://studio-5.financialcontent.com/investplace/quote?Symbol=RYL
  4. DHI: http://studio-5.financialcontent.com/investplace/quote?Symbol=DHI
  5. TOL: http://studio-5.financialcontent.com/investplace/quote?Symbol=TOL

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