Home prices have seen their best gains since 2006, beating economists' expectations.
The S&P/Case Shiller index saw prices in the 10-city and 20-city composites rise 12.8% year-over-year, trumping economists' forecast of a 12.5% gain. The result market the strongest rise since February 2006 according to David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices.
"All 20 cities reported positive year-over-year returns. Thirteen cities posted double-digit annual gains," Blitzer said.
Blitzer said Las Vegas and California "continue to impress" with 20% year-over-year price increases. Denver and Phoenix, meanwhile, have now posted 20 consecutive annual increases.
In spite of the rise, Blitzer said the index showed that the peak rate of gain came last April. While prices have continued to rise, they have done so at a slower pace.
"Recent increases in mortgage rates and fewer mortgage applications are two factors in these shifts," he said.