U.S. property prices increased by 0.8% in April from the previous month, the third consecutive month, as the residential property market shows signs of stabilisation, according to the Federal Housing Finance Agency (FHFA).
The rise beat the 0.4% increase that was the average projection of 19 analysts in a Bloomberg survey.
Property prices, which have appreciated 3% year-on-year, are being supported by greater demand, thanks to lower unemployment, low interest rates and a restricted supply of homes for sale.
The FHFA index, which measures price changes of single- family houses, showed increases in six of the nine regions covered on a seasonally adjusted basis. The monthly gain was led by a 2.2% rise in the area that includes California and Oregon. Prices fell 1.2% in the region that includes Massachusetts and Maine.
The U.S. gauge is 18% below its 2007 peak and is at roughly the same level it was in April 2004, the FHFA said.
The latest Zillow home price index also shows that property prices in the USA increased in May compared to the previous month, climbing 0.5%
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