Home Price Appreciation Slows

Home-price appreciation is slowing going into the Spring housing season with Case-Shiller's March data offering the latest indication. The 20-city adjusted index rose a softer-than-expected 0.5 percent which is just below Econoday's low estimate. This follows last week's very weak FHFA report and also similarly soft price indications in both the new and existing home reports.

Minneapolis has been showing a run of strength, jumping a monthly 1.3 percent in March following 0.9 and 1.0 percent gains in the prior two months. Otherwise, the West continues to dominate with Seattle and Las Vegas also rising 1.3 percent in the month and Phoenix up 1.0 percent. But cities like Atlanta at 0.3 percent and Charlotte at 0.5 percent tell the month's story, both posting moderate gains. Cleveland, at minus 0.2 percent, and Dallas at plus 0.2 percent bring up the rear,

The year-on-year rate for Case-Shiller is steady, coming in at 6.8 percent though the slowing in the monthly rate will ease expectations for an approach to the 7 percent line. The unadjusted monthly index rose 1.0 percent reflecting March's relative strength in home prices compared to other months.

But early traction in the Spring housing season appears to be less convincing than usual which, for policy makers committed to sustainable economic growth, is probably a plus given what may have been a pattern of overheated price appreciation last year. And there's still hints of this out West with year-on-year growth in Seattle, Las Vegas and San Francisco all in the double digits (12.9, 12.4, and 11.2 percent respectively).