House prices in April were 3.5% higher than the previous year, according to the S&P CoreLogic Case-Shiller US National Home Price Index. The increase was lower than the 3.7 per cent gain in March.
However, the composition of 10 cities began to increase again and increased 2.3% annually, up from 2.2% last month. The composition of 20 cities increased 2.5% the following year, down from 2.6% in March.
The report looks back two months and is a three-month running average of prices. Other recent reports have shown that house price gains are rising again thanks to lower mortgage rates and more demand. Prices tracked by Zillow have fallen month-on-month in two straight months on a seasonally adjusted basis. These are the first monthly drops of seven years. Prices also began to generate steam every year in April, according to another survey by CoreLogic.
On the Case-Shiller report, Las Vegas, Phoenix and Tampa, Florida, the biggest annual win was among the 20 cities in April. Las Vegas prices rose 7.1
"The house price gains continued in a trend of broad moderation," said Philip Murphy, CEO and global leader in index management at S&P Dow Jones Indices. "This year's price increases remain positive in most cities but with weaker changes. Seattle is a remarkable exception, with the YOY change falling from 13.1% in April 2018 to 0.0% in April 2019."
Mortgages have gone smoothly this year, which gives home buyers more purchasing power. Lower prices often coincide with higher prices because buyers can bid higher and competition increases. Although the potential price in the prices has not yet been shown in this report, the existing home sales are rising more than expected in May, according to the National Association of Realtors, which suggests renewed demand. The median price of a home sold in May also rose to the highest level ever. Part of it can be a change in the mix of homes that sell, as there are many more cheaper homes for sale, but a very, very tight supply of cheap homes for sale.