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Home Prices See Biggest Gain in 7 Years

February's price gain was also revised upward


home for saleThe U.S. housing market continues to show signs of strength.

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.

Homebuilder on the Verge of a Double-Top Breakout
Homebuilder on the Verge of a Double-Top Breakout

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) and D.R. Horton (DHI) shares climbed almost 3% in Tuesday morning trading, while  (TOL) rose almost 2%.

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