Home prices in the largest U.S. cities are recovering at boom-era levels, with a closely watched index posting its strongest increase in close to seven years.
Tight housing supply and strong demand continued to fuel a robust market recovery in March, with the Standard & Poor's/Case-Shiller index of 20 U.S. cities recording a 10.9% year-over-year increase.
That was the strongest increase since April 2006. The index was up 1.4% from the prior month.
A separate national index showed home prices rising 10.2% year-over-year at the end of the first quarter.
The price increases mean that a housing recovery that began last year is gaining momentum. The cities of Charlotte, Los Angeles, Portland, Seattle and Tampa posted their biggest month-over-month gains in more than seven years.
On an annual basis, the recovery has been widespread, with every metro area tracked by the survey posting year-over-year gains for the past three consecutive months. Home prices, as gauged by the 20-city index, are now about 29% off their peak.