April’s housing gains could signal a turn
Twin Cities home prices that month rose nearly 4 percent from a year earlier. Experts greeted the news with cautious optimism.
Home prices in the Twin Cities and across the country rose slightly during April, reversing a seven-month slide and bolstering hopes that the market has turned the corner.
According to the latest Case-Shiller home price index, Twin Cities prices rose 0.5 percent from March to April and 3.8 percent compared with last year in the Twin Cities. The numbers were met with cautious optimism.
“It has been a long time since we enjoyed such broad-based gains,” said David Blitzer, chairman of the index committee at S&P Indices. “While one month does not make a trend, particularly during seasonally strong buying months, the combination of rising positive monthly index levels and improving annual returns is a good sign.”
The report is the latest signal that the housing market is gaining strength. New home sales are rising, foreclosure rates are falling and the inventory of homes for sale has slipped to near-historic lows.
The Twin Cities was among only 10 metro areas where prices were up compared with last year. Phoenix topped the list with a 8.6 percent increase; the Twin Cities index was up 3.8 percent.