Rising prices for single family homes beat economists’ forecasts in April, adding more evidence that the housing market continues to recover.
On Tuesday, data from the S&P/Case Shiller index showed that home prices in 20 major U.S. cities climbed a seasonally-adjusted 1.7% in April. That topped the 1.2% gain economists had expected. Compared to the same period in the prior year, single family home prices surged 12.1%, the largest year-over-year rise in seven years, Reuters noted.
Home prices in San Francisco surged 23.9% compared to the prior year. Prices in Las Vegas recorded an annual 22.3% jump Prices also rose strongly in Dallas, Detroit, Minneapolis and Atlanta.
Without the seasonal adjustment, home prices in the 20 markets jumped 2.5%, the largest monthly rise ever recorded by the index.
Historically low mortgage rates have boosted home sales over the past several years.