Report: Metro home prices rise on back of tax credits

The high-profile Standard & Poor's Case-Shiller home price index shows that Twin Cities home prices in April enjoyed some gains during the last month buyers could qualify for federal tax credits.

According to Case-Shiller, Twin Cities home prices in April climbed nearly 10 percent from the same time last year. They also showed an increase of nearly 2 percent from March.

The Twin Cities fared better in April than the Case-Shiller 20 city composite index, whose monthly and year over year gains were more modest.

April was the last month during which home buyers could qualify for federal tax credits, and there was a big spike in signed purchase agreements that month.

The Case-Shiller report said with the federal program ended, more recent data show the housing market experiencing sharp declines in several key measures. "Consistent and sustained boosts to economic growth from housing may have to wait to next year," the report said.

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