(Image source: Wikimedia Commons )

 

BY STEVEN SPARKMAN

 

An index of home prices in the U.S.’s largest cities shows prices rose in April for the first time since last fall.

 

The S&P / Case-Shiller Index showed prices rose 1.3 percent over the previous month — much higher than expected. Stuart Varney on Fox Business reports , this could finally be the start of a growth trend.

 

“Home prices continuing to fall year-over-year but actually going up month over month. Some are taking that as a signal that the housing fall has bottomed out during the spring.”

 

Prices are still declining over where they were a year ago, but the new numbers show the smallest decline since 2010. S&P’s David Blitzer told Business News Network it’s really the monthly prices you need to watch, anyway.

 

“I think this time the monthly number is really the key figure. The year-over-year is the last 12 months put together, and so some of that might be called old news.”

 

A report on Monday showed home sales rising by 8% in May over the previous month. A writer for MarketWatch says Tuesday’s price report is just one more piece of good news.

 

“The report dovetails with other indicators showing a housing market crawling off lows, as the unemployment rate has come down from peaks and as mortgage rates are around record lows.”

 

A writer for Bloomberg points out good news helps beget good news, as people are more likely to buy a home if they’re convinced the price slide is finally over.

 

“A turnaround in prices is a necessary step toward luring more buyers and sustaining demand for housing, which is starting to stabilize after precipitating the last recession almost five years ago.”

 

But a writer for the Wall Street Journal says don’t be too quick to celebrate, since there are other factors in the housing market that made the new price gains easy to see coming.

 

“First, the number of homes for sale has been much lower … Second, the share of homes selling out of foreclosure has fallen. … Will the recent gains stick? Probably through the summer, but after that, it really depends on whether supply rises and demand wanes. If either happens, then look for prices to soften again.”

 

If the price trend continues, forecasters say -- expect to see the year-over-year numbers go positive sometime before fall.