Home Prices Flatten Out

Home prices flattened out more than expected in March, at only a 0.1 percent increase for Case-Shiller's 20-city adjusted index which is below Econoday's consensus range. Year-on-year growth fell 3 tenths to 2.7 percent which is a 7-year low.

With the exceptions of bounce backs in the West, most of the 20 cities show flat monthly results including no change for New York, a 0.1 percent dip for Dallas and a 0.2 percent dip for Chicago. San Diego and San Francisco both jumped 0.7 percent in March though their year-on-year growth rates of 1.3 percent along with LA which is also at 1.3 percent are the lowest on the list. Las Vegas leads the list at 8.2 percent but has now slipped each month since hitting a peak in August at 13.9 percent.

Case-Shiller data are 3-month averages which will slow the report's response to the ongoing pivot higher in underlying sales. Yet indications from the FHFA house price index, up only 0.1 percent in March and also released this morning, are also pointing to very subdued conditions. In contrasting data for April, prices in last week's existing home sales and new home sales reports showed very sharp increases consistent with improving sales.