US home prices climbing steadily

WASHINGTON (AP) — U.S. home prices increased at a solid clip in April, led by double-digit jumps in Denver and San Francisco.

The Standard & Poor's/Case-Shiller 20-city home price index rose 4.9 percent in April from 12 months earlier, roughly the same annual pace as March, S&P Dow Jones Indices said today.

Strong job growth and low mortgage rates have prompted greater demand for housing, boosting home values. The continued gains are at roughly double the pace of wage growth, but current levels appear more manageable than the double-digit home price increases seen during parts of 2013 and 2014.

"These gains are probably sustainable," said David Berson, chief economist at Nationwide Insurance. "They're not so rapid as to cause worry that people won't be able to afford to buy the average home."

Prices in the Denver metro areas climbed 10.3 percent, while home values in San Francisco rose 10 percent. Values increased more than 7.5 percent in Dallas, Miami, Seattle and Tampa. But price growth was tepid in the Boston, Cleveland and Washington, D.C. areas, where prices were up by 1.8 percent or less.

The Case-Shiller index covers roughly half of U.S. homes. The index measures prices compared with those in January 2000 and creates a three-month moving average. The April figures are the latest available.