The seasonally adjusted Case-Shiller Home Price Index increased 0.67% in April, marking the third consecutive monthly increase. This is the first sustained gain since the recovery began three years ago, excluding the gains seen when the temporary first-time home buyer credit program was in place during an extended part of 2009 and 2010. Among the twenty metro areas tracked, seventeen of them showed an increase in the home price index, while home price gauges of Boston, Detroit, and New York slipped.

On a year-to-year basis, the Case-Shiller Home Price Index is approaching positive territory, with year-to-year decline in April at 1.9%. As Chart 2 shows, the Core Logic House Price Index of April and the median sales price of an existing single-family home in May, reported by the National Association of Realtors, both show stronger improvements. The stability of home prices is a noteworthy development in recent months. However, the housing sector remains “depressed” as the Fed continues to convey in its policy statements.

Asha Bangalore — Senior Vice President and Economist

http://www.northerntrust.com

Asha Bangalore is Vice President and Economist at The Northern Trust Company, Chicago. Prior to joining the bank in 1994, she was Consultant to savings and loan institutions and commercial banks at Financial & Economic Strategies Corporation, Chicago.

The opinions expressed herein are those of the author and do not necessarily represent the views of The Northern Trust Company. The Northern Trust Company does not warrant the accuracy or completeness of information contained herein, such information is subject to change and is not intended to influence your investment decisions.

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