NEW YORK — Home prices in 20 US cities rose for a fourth successive month in September, a private index showed yesterday, pointing to improvement in real estate that is helping the US economy emerge from recession.
The S&P-Case-Shiller home-price index increased 0,27% from the prior month on a seasonally adjusted basis, after a 1,13% rise in August, the group said yesterday in New York. The gauge fell 9,36% from September last year, more than forecast, yet the smallest year- over-year decline since the end of 2007.
Rising home sales, aided by government programmes and a decline in mortgage rates this year, have helped stem the slump in property values that precipitated the worst recession since the 1930s.
Home buying and consumer spending may still be hampered by higher unemployment, which may prompt more foreclosures.
Economists forecast the 20-city home-price index would decline 9,1% from September last year, after a previously reported 11,32% drop in the 12 months ended in August, according to the median forecast of 30 economists in a Bloomberg News survey. Estimates ranged from decreases of 8,3% to 10,3%. Year-over-year records began in 2001.
Nineteen of the 20 cities in the S&P-Case- Shiller index showed a smaller year-over-year decline than in August.
Existing home sales last month rose to the highest level in more than two years, the National Association of Realtors data showed on Monday.
The median sales price fell 7,1% from a year earlier, the smallest decline in more than a year.
Housing has been among the industries leading to stabilisation in the US economy.
To ensure the recovery in housing continues, US President Barack Obama and Congress this month extended a tax credit of as much as 8000 for first- time home buyers until April 30, from next Monday. They also expanded it to include some existing owners.
Existing home sales last month rose to the highest level in more than two years