US house prices rise at fastest rate in seven years

 
Suzie Neuwirth

US HOUSE prices rose 10.9 per cent in March, according to the S&P/Case-Schiller Home Price Index.

The year-on-year increase is the largest in seven years and indicates that confidence in the US economy is improving.

20 cities were analysed for the survey, with Phoenix, Arizona posting the largest increase at 22.5 per cent, followed by San Francisco with 22.2 per cent. The weakest annual price gains were seen in New York, at 2.6 per cent, Cleveland at 4.8 per cent and Boston at 6.7 per cent.

“Other housing market data reported in recent weeks confirm these strong trends: housing starts and permits, sales of new home and existing homes continue to trend higher,” said David M. Blitzer, chairman of the index committee at S&P Dow Jones Indices.

“At the same time, the larger than usual share of multi-family housing, a large number of homes still in some stage of foreclosure and buying-to-rent by investors suggest that the housing recovery is not complete.”