Home price increases slow down in April

Home prices increased in value at a slower rate in April, as gains in the housing market appear to be flattening out.

Prices in 20 cities nationwide climbed 4.9 percent over the last 12 months ending in April, down slightly from yearly gains posted in March, according to the S&P/Case-Shiller Home Price Indices.

The S&P/Case-Shiller Home Price Index, which tracks prices across the country, climbed just 4.2 percent in April, down from a 4.3 percent increase in March.

While the housing market may not be accelerating, the overall trend in the critical economic sector seems to be positive. On Monday, the National Association of Realtors reported that pending home sales were up 0.9 percent in April, and now are at the best rate in nearly a decade.

Furthermore, the fact that prices are rising at the rate they are, while inflation remains well below historical levels, indicates that homes are gaining value at a faster rate than first meets the eye.

“Home prices continue to rise across the country, but the pace is not accelerating,” said David Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices. “Recent housing data is positive. Sales of new and existing homes are rising in recent reports and construction of new homes enjoyed strong gains in May.”

Home prices were up in the last year in all 20 housing markets tracked by the index, with San Francisco leading the way with home price gains of 10 percent.

Over the last month, home prices were largely flat. When the numbers are seasonally adjusted, home prices did not increase at all nationwide, and were down in eight of the 20 tracked cities. Home prices were up 0.2 percent from March to February on a seasonally-adjusted basis.