Home prices slow losses

Home prices fell at their slowest rate since 2010, in an indication that a housing sector that has persistently dragged on the economy might be improving.

The S&P/Case-Shiller home price index reported Tuesday that prices in the nation's cities were down 1.9 percent in April compared to the same time last year. Furthermore, prices actually climbed from March to April by 1.3 percent, as the spring homebuying season began to ramp up.

"With April 2012 data, we finally saw some rising home prices," said David Blitzer, chairman of the index committee at S&P Indices. "While one month does not make a trend, particularly during seasonally strong buying months, the combination of rising positive monthly index levels and improving annual returns is a good sign."

The warm months of the spring and summer typically bring a boost to the housing market. However, Blitzer noted that even when the new data is seasonally adjusted, it still shows slight gains. While he cautioned that these adjustments make the data less reliable, they could indicate that the gains in home prices are due to more than just the seasonal uptick.

Of the 20 cities tracked by the index, only Detroit and New York saw the trajectory of their home prices get worse from March to April. And Atlanta was the only city to post double-digit negative annual returns, with prices down 17 percent, as no cities reached new lows in the month of April.

Half of the cities tracked posted annual gains in home prices, with Phoenix leading the way with prices 8.6 percent higher than they were a year ago.

Notwithstanding recent setbacks, most economic indicators have shown decent gains since the financial downturn and recession. However, the housing market has been a consistent drag on the economy. The Federal Reserve said in its latest statement that despite some improvements, the sector remains "depressed."

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