WASHINGTON (AP) — U.S. home prices rose in April for the eighth straight month, even as sales have stumbled, a sign the coronavirus outbreak has had little impact on real estate values.
The S&P CoreLogic Case-Shiller 20-city home price index climbed 4% in April, the largest gain since December 2018, up from 3.9% in March.
Home sales have fallen sharply for three straight months to their lowest annual pace in nearly a decade in May. Yet the supply of available houses for sale has also declined, forcing remaining buyers to bid up prices.
“The price trend that was in place pre-pandemic seems so far to be undisturbed, at least at the national level,” said Craig Lazzara, managing director of S&P Dow Jones Industries. “Prices in 12 of the 20 cities in our survey were at an all-time high in April.”
Sales of existing homes are likely to pick up in coming months, however. A measure of signed contracts to buy homes soared 44% in May, a record increase. And sales of new homes also rebounded in May.