From Bloomberg:
Home prices in 20 U.S. cities rose in April from a year earlier as sales got a boost from a tax credit aimed at reviving the industry that triggered the worst recession since the 1930s.The S&P/Case-Shiller index of property values climbed 3.8 percent from April 2009, the biggest year-over-year gain since September 2006, the group said today in New York. The increase exceeded the median forecast of economists surveyed by Bloomberg News.
The end of a government homebuyer incentive worth as much as $8,000, mounting foreclosures and unemployment near a 26-year high threaten to set real estate prices back following the stabilization that began earlier this year. Eroding home equity may limit household spending, the biggest part of the economy, even as gains in income help underpin demand.
Let's take a look at the data. Click on all images for a larger image:
The year over year number continues to improve
While the month to month number continues to stabilize.
Notice that last month only three cities had negative month to month numbers.
With the expiration of the tax credit comes a series of questions, especially about the sustainability of the price increases. Only time will tell.
