US home prices rose at a largest rate since 2006

Official data showed that S&P/Case-Shiller Composite-20 Home Price Index in United States registered a rise by 10.87% during March 2013, compared to March 2012, as the indicator changed at the biggest rate since April 2006. The index, which gauges home price changes in 20 major cities throughout United States, recorded improved values in every single city.

On a monthly basis the indicator rose by 1.4% during March, as that was the largest monthly change since July last year. Seasonally adjusted data showed that houses added to their value 1.1% during March on a monthly basis. Phoenix is the region with the sharpest price jump, 22.5% in annual terms, while New York registered the slightest increase in prices, merely 2.6%. Sustained low rates of interest as well as increased demand contributed the rise. Regardless of this current increase in prices, homes in US are still 28% less expensive than they were back in 2006.

After the release of this indicator US dollar expanded against the euro, as EUR/USD dropped to 1.2911, after which euro regained positions to 1.2922.