The US housing price index released by the Office of Federal Reserve Housing Enterprise Oversight rose by 0.7 per cent month-on-month in April, weaker than expectations of plus 1.2 per cent and the rise of 1.3 per cent in March.
But home prices in major US cities as measured by the S&P/Case-Shiller house price index rose 1.72 per cent month-on-month versus a 1.2 per cent increase expected. By comparison, prices rose 1.12 per cent in March. Year-on-year, prices rose by 12.1 per cent, compared to expectations of a 10.6 per cent rise and a previous reading of 10.9 per cent up.
Commenting on the S&P/Case-Schiller figures, the eponymous Robert Schiller is feeling optimistic about the housing market, saying it's a "safe bet" prices will go up again over the next 12 months.
Some reactions from Twitter:
US APRIL CASE-SHILLER UNADJ HOME IDX +2.5%; +12.1% - not exactly an economy that looks like it is slowing.— Lars Christensen (@MaMoMVPY) June 25, 2013
What you need to know: Robert Schiller: mortgage markets are broken. Boom. Days done. Off to drinks in the sun. Ta ta!— Dr Ausberto Torres (@aussietorres) June 25, 2013
#CaseShiller: Analysts are missing the huge increase in rental inventory in MSAs in which prices have grown most. This will prove disruptive— Dan Alpert (@DanielAlpert) June 25, 2013