US home prices rose in April at fastest pace in 16 years

[WASHINGTON] US single-family home prices in 20 key urban markets rose in May from a year earlier at the fastest pace in more than 16 years, a closely watched survey said on Tuesday.

The S&P/Case Shiller composite index of 20 metropolitan areas gained 17 per cent through the 12 months ended in May, the largest annual price increase since August 2004. A Reuters poll of economists had forecast a 16.4 per cent increase.

On a month-to-month basis, the 20-city composite index rose 1.8 per cent from April. Economists polled by Reuters had been expecting a 1.6 per cent increase.

REUTERS