U.S. home prices grew at fastest rate in nearly three years

By Greg Robb
Published: Apr 25, 2017 3:13 p.m. ET

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U.S. house prices continued to show no signs of slowing, hitting their highest in nearly three years as demand remains hot, especially in the Pacific Northwest and Dallas.

The S&P/Case-Shiller 20-city index rose 5.9% in the three-month period ending in February compared to the same period a year ago, an acceleration from its 5.7% yearly increase in January. This is the highest rate since July 2014.

The 20-city index was up 0.4% for the month, or a 0.7% gain when seasonally adjusted.

Economists had forecast a 0.8% monthly gain and a 5.8% yearly gain for the 20-city index.

Metro Monthly change (%) 12-month change (%)
Atlanta 0.4 5.6
Boston 0.4 7.6
Charlotte 0.5 6.1
Chicago 0.2 6.2
Cleveland -0.3 4.5
Dallas 1.1 8.8
Denver 0.4 8.5
Detroit 0.3 6.2
Las Vegas 0.4 6.3
Los Angeles 0.4 5.1
Miami 0 6.7
Minneapolis 0.1 5.9
New York 0 3.2
Phoenix 0.4 5.3
Portland 0.8 9.7
San Diego 1 6.5
San Francisco 1.2 6.4
Seattle 1.9 12.2
Tampa -0.5 6.9
Washington 0.2 4.1

The national index, which just a few months ago regained the high last seen during the housing bubble of a decade ago, rose 5.8% for the year, a 32-month high.

The largest price increases are still in the Pacific Northwest, including Seattle and Portland. Dallas replaced Denver in the top three with an 8.8% increase.

Only Cleveland and Tampa saw prices fall in the February period. Prices were flat in New York and Miami.

Separately, the Federal Housing Finance Agency also released home-price data for February, which is based on mortgages backed or guaranteed by FHFA-regulated Fannie Mae and Freddie Mac. It showed a seasonally adjusted 0.8% rise for February and a 6.4% year-over-year improvement.

Over 12 months, the Mountain region — Montana, Idaho, Wyoming, Nevada, Utah, Colorado, Arizona and New Mexico — had the fastest growth of 9.5%.

http://www.marketwatch.com/story/us-...ing-2017-04-25