U.S. home prices continued rebounding in April, rising 2.5 percent over March levels such that they are now more than 12 percent above April 2012 levels; the latest sign the housing-sector meltdown that took the economy with it may well be receding in the rearview mirror, according to the latest S'P Case-Shiller Home Price Indices.
Both the 10-city index and the 20-city index that make up the data series posted their biggest monthly gains in the history of the report, and both indexes have posted positive year-over year returns for the fourth-straight month.
Signs of a rebound in housing are exceedingly good news for the economy, given that the entire crash of 2008-2009 and the ensuing “Great Recession” began in the real estate market. It’s hardly a surprise that investment funds focused on housing are rebounding too.
The share price of the SPDR S'P Homebuilders ETF (XHB) was up 2.6 percent on Tuesday morning, and it has risen about 10 percent this year and almost 50 percent year-to-date, as home construction begins to fire up again in the face of tight inventories in many markets, such as the U.S. Northeast.
In the Case-Shiller survey, the 10-city index rose month-on-month 2.6 percent, while the 20-city index rose 2.6 percent, S'P Dow Jones Indexes said in a press release today. In the monthly series, only Detroit failed to post monthly gains. On an annualized basis, the 10-city index rose 11.6 percent and the 20-city index rose 12.1 percent.
Measured from the housing market’s peak, the “peak-to-current-decline” for both the 10- and 20-city composites is 26 to 27 percent.
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