Home prices in 20 U.S. cities rose less than forecast in March from a year earlier, a sign the housing recovery is cooling.
Federal tax credits have succeeded in propping up home sales and prices, raising concern the looming end of government support will spell another round of losses. Any sustained recovery in home sales and prices hinges on maintaining and deepening job growth in the world’s biggest economy.
"You probably did get some support to house prices from the credit, and as that wears off house prices may fall off a little bit," Michael Feroli, chief U.S. economist at JPMorgan Chase & Co. Inc. in New York, said before the report. "We don’t expect house prices to pick up noticeably for a long time. If the recovery continues, I expect home sales to pick up with the labour market."
The median forecast was based on the median forecast of 26 economists surveyed. Estimates ranged from a gain of 1.5% to a gain of 3.3%. Year-over-year records began in 2001. The group revised February figures to show a 0.7% year-over-year gain compared with a previously estimated gain of 0.6%.
