Home Prices Edge Up, But No Signs of a Hard Recovery

A national index of home prices in 20 major cities increased 3.8 percent in April compared to a year ago – and most cities saw improvement over the previous month, according to the S&P/Case-Shiller indices.

But home prices remain close to the lows set a year ago, and nine of the 20 cities have reached new lows over the past six months, said David M. Blitzer, chairman of the Index Committee at Standard & Poor’s.

Month over month improvements are attributed to the homebuyer tax credit program, which expired April 30, Blitzer said.

Several housing market indicators have shown a slowdown in activity in the aftermath of the tax credit expiration.

“Other housing data confirm the large impact, and likely near-future pullback, of the federal program,” Blitzer said. “Recently released data for May 2010 show sharp declines in existing and new home sales and housing starts. Inventory data and foreclosure activity have not shown any signs of improvement. Consistent and sustained boosts to economic growth from housing may have to wait to next year. ”

Eighteen cities saw month-to-month gains in April, compared to six in the previous month. Miami and New York fared the worst in April, compared to March.

See S&P/Case-Shiller’s full report.