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S&P Case-Shiller Index Shows April Home Prices Rise

Economists say the price increase signals a housing recovery


Home prices in the U.S. increased 1.3% in April over March, according to the Standard & Poor’s/Case-Shiller index released today.

For the year that ended in April, home prices dipped 1.9%. That was a smaller year-over-year decline than registered in February or March, when prices fell 2.9% and 2.6% compared to 2011, USA Today noted.

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The index showed that home prices gained in 18 of the 20 largest U.S. cities. Economists who helped prepare the index noted that the rise in prices signals a growing recovery in the housing market.

The latest Case-Shiller figures come on the heels of yesterday’s announcement by the Commerce Department that sales of new homes jumped 7.6% in May, beating economists’ forecasts and hitting a two-year high.

Last week, the government said housing starts dropped 4.8% in May, but new permits for new residential construction rose 7.9%, the best showing since September 2008.

Investors greeted today’s news, sending shares of homebuilders higher. Ryland (NYSE:RYL) and Toll Brothers (NYSE:TOL) saw their shares rise by more than 4%, while D.R. Horton (NYSE:DHI) shares moved up 3% in Tuesday afternoon trading.

Article printed from InvestorPlace Media,

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