Home prices in large U.S. cities rose sharply in April, posting the biggest one-month gain in the history of a leading U.S. home price index.
The Standard & Poor's/Case-Shiller index of 20 large U.S. cities rose 2.5% over March and 12.1% from April 2012. Every city tracked by the measure has now posted at least four consecutive months of year-over-year increases, indicating a broad and robust real estate recovery.
Prices have risen so quickly in certain markets — including Los Angeles, San Diego and San Francisco — that some economists are warning of another housing bubble. San Francisco posted the biggest year-over-year gain, a whopping 23.9%.
Home prices can't continue at this breakneck pace for long without accompanying growth in jobs and wages, economists said. Relatively tight access to mortgage credit should also put a check on runaway prices.
"I would be stunned if we keep going at this pace," said Richard Green, director of the USC Lusk Center for Real Estate.