US homes rose in March, racking up their best annual gain in nearly seven years.
The S&P/Case Shiller composite index of 20 metropolitan areas gained 1.1 percent in March on a seasonally adjusted basis, topping economists' forecasts for a 1 percent rise.
Prices in the 20 cities jumped 10.9 per cent year over year, beating expectations for 10.2 per cent. This was the biggest increase since April 2006, just before prices peaked in the summer of that year. This could be good news for house owners in the UK where rises often lag the US market.
All 20 cities covered by the US index saw yearly gains for the third month in a row. Average prices in March were back at their late-2003 levels.
Annual prices rose in Phoenix by 22.5%, the biggest gain among the 20 cities. It was followed by San Francisco (22.2%) and Las Vegas (20.6%).
New York City had the smallest annual increase at 2.6%, followed by Cleveland at 4.8%.
The Case-Shiller index adds to recent data suggesting that the US housing market is steadily recovering, buoyed by solid employment gains and near-record low mortgage rates.
Sales of new homes rose in April to nearly a five-year high. And sales of previously-occupied homes rose in April to the highest level in three and a half years.
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