Home Price Increases Begin To Slow

The S&P/Case-Shiller Home Price Indices – considered the leading measure of U.S. home values – showed prices up in their latest release. The report found rising home prices on a monthly, quarterly, and yearly basis, but also showed the gains have begun getting smaller in recent months. In fact, prices gained less than 1 percent in March, the most recent month included in the release. David M. Blitzer, chairman of the index committee at S&P Dow Jones Indices, said the year-over-year changes suggest that prices are rising more slowly. According to Blitzer, annual price increases for both the 10-city and 20-city indexes slowed in the past four months and 13 cities saw annual price changes moderate in March. Still, all cities included in the report had higher prices than one year ago. Blitzer says housing indicators remain mixed, noting the recent improvement in new home sales and mortgage rates falling to near 7-month lows. However, low interest rates and moderating price increases should help affordability levels and lead to boosted buyer traffic and higher home sales this spring and summer. More here.

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