U.S. home prices increased an average of 1.7%, seasonally adjusted, in April compared to March in the top 20 metropolitan markets, according to the April 2013 S&P/Case-Shiller Home Price Index.
Similarly, home prices increased 1.8%, seasonally adjusted, for the top 10 metro markets tracked in the report.
Not seasonally adjusted, the monthly increases were 2.5% and 2.6% for the 20- and 10-city composites, respectively.
Year over year, home prices increased 12.1%, seasonally adjusted, for the top 20 metro markets, and 11.6% for the top 10 markets – the highest yearly gain since March 2006, according to the report.
These increases surpass the ones seen in the previous housing bubble in 2006-2007.
‘The 10- and 20-city composites posted their highest monthly gains in the history of S&P/Case-Shiller Home Price Indices,’ said David M. Blitzer, chairman of the Index Committee at S&P Dow Jones Indices. ‘Thirteen cities posted monthly increases of over two percentage points, with San Francisco leading at 4.9%.’
Blitzer noted that Atlanta, Las Vegas, Phoenix and San Francisco posted year-over-year gains of over 20% in April. San Francisco was the highest at 23.9%, while Phoenix posted 12 consecutive months of double-digit growth.
‘Last week's comments from the Fed and the resulting sharp increase in Treasury yields sparked fears that rising mortgage rates will damage the housing rebound,’ Blitzer said. ‘Home buyers have survived rising mortgage rates in the past, often by shifting from fixed-rate to adjustable-rate loans. In the housing boom, bust and recovery, banks' credit quality standards were more important than the level of mortgage rates. The most recent Fed Senior Loan Officer Opinion Survey shows that some banks are easing credit restrictions. Given this, the recovery should continue.’
The spike in April brings home prices back to early 2004 levels for both the 10-city and 20-city composites.
Month over month, Detroit was the only metro market of the 20 that remained flat, according to the report. Year over year, all 20 cities showed increases compared to April 2012.