House prices in 20 U.S. metropolitan areas fell over the last year due to a sales boost brought on by lower borrowing costs and a bolstered job market, according to Bloomberg.
The S&P/Case-Shiller index shows home values have dropped 2.6 percent from a year earlier. The index fell 3.5 percent in February.
The index may be a sign that the housing market is making a comeback, according to Bloomberg.
Homebuilders are saying the spring selling season is the most-improved in seven years, which is fueled by record-low mortgage rates and shrinking inventories.
“We’ve turned the corner,” Scott Brown, chief economist at Raymond James & Associates in St. Petersburg, Fla., told Bloomberg. “This was always going to be a very gradual process. No one expected a real sharp housing recovery.”
Demand for homes is helping to stabilize prices.
A report from the Commerce Department shows a 3.3 percent rise in new home sales in April to a 343,000 annual rate, according to Bloomberg.
EMAIL: email@example.com TWITTER: @joeyferguson
Copyright 2016, Deseret News Publishing Company