The National  Memo Logo

Smart. Sharp. Funny. Fearless.

Monday, December 09, 2019 {{ new Date().getDay() }}

Washington (AFP) — U.S. home price gains slowed sharply in April, providing fresh evidence of a weakness in the housing market recovery, the S&P Case-Shiller index showed Tuesday.

The 20-city index of home prices rose at an annual rate of 10.8 percent in April, following the 12.4 percent growth rate posted for March. Month-over-month, the index rose 1.1 percent.

The slowdown was seen in 19 of the 20 cities, with three California cities — Los Angeles, San Diego, and San Francisco — posting hefty price drops of about three percentage points, year-on-year.

Boston was the only city where the price gains picked up pace.

The slowdown was stronger than expected. Analysts on average estimated the 20-city index would post an annual pace of 11.6 percent.

David Blitzer, chairman of the index committee, said that although the annual gains weakened, the month-over-month numbers were strong.

Five cities — Atlanta, Boston, Chicago, San Francisco, and Seattle — had monthly gains of at least two percent.

“Near-term economic factors favor further gains in housing: mortgage rates are lower than a year ago, the Fed is expected to keep interest rates steady until mid-2015, and the labor market is improving,” he said.

“The question is whether housing will bounce back before the Fed begins to tighten some time next year.”

AFP Photo/ Scott Olson

Interested in news on the economy? Sign up for our daily email newsletter!

Start your day with National Memo Newsletter

Know first.

The opinions that matter. Delivered to your inbox every morning

Trump supporter holds "Stop the Steal" sign on the morning of the January 6, 2021 Capitol riot.

War is peace.

Freedom is slavery.

Keep reading... Show less

Close