5/28, 3:25 PM (Source: TeleTrader)
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US home price growth slows to 3.7% in March

Prices of homes in all nine census divisions in the United States grew by 3.7% in March on an annual basis, decelerating from 3.9% growth recorded in the month before, according to an update from S&P CoreLogic Case-Shiller released on Tuesday.

The 10-City Composite data also showed a deceleration in year-over-year annual growth, at 2.3%, down from 2.5% in February, while the 20-City Composite rise slowed from 3% to 2.7% at the same time. The largest gains were observed in Las Vegas, Phoenix and Tampa 8.2%, 6.1% and 5.3 %, respectively. In only four of the 20 cities, housing price growth accelerated, the report noted.

"The patterns seen in the last year or more continue: year-over-year price gains in most cities are consistently shrinking. Double-digit annual gains have vanished," said Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices, David M. Blitzer. "Given the broader economic picture, housing should be doing better. Mortgage rates are at 4% for a 30-year fixed rate loan, unemployment is close to a 50-year low, low inflation and moderate increases in real incomes would be expected to support a strong housing market. Measures of household debt service do not reveal any problems and consumer sentiment surveys are upbeat. The difficulty facing housing may be too-high price increases."

Breaking the News / NI