June 26, 2012 / 1:18 PM / in 6 years

Instant View: Home prices rise for third month in April: S&P

NEW YORK (Reuters) - Single-family home prices picked up for a third month in a row in April, suggesting the recovery in the housing market is gaining traction, a closely watched survey showed on Tuesday.

COMMENTS:

PETER CARDILLO, CHIEF MARKET ECONOMIST AT ROCKWELL GLOBAL CAPITAL, NEW YORK

“They came in better-than-expected, which is a pleasant surprise. It is confirming yesterday’s number that the housing sector is improving slightly, although at a slightly lower pace. But the market is not going to be impacted by this, as the upcoming EU summit continues to be the major concern to investors.”

JACOB OUBINA, SENIOR U.S. ECONOMIAT, RBC CAPITAL MARKETS, NEW YORK

“The data was a little better than expected, but downside pressure remains just from the glut of shadow inventory from foreclosures. We should see flat to modestly lower prices over the balance of the next few years until we work through this inventory. The foreclosure process has been sluggish to say the least. This has been going on for years and that needs to be accelerated.”

KATHY LIEN, MANAGING DIRECTOR, BK ASSET MANAGEMENT, NEW YORK

“No surprises here. We got an uptick on a monthly basis but still saw a decline year-on-year. At the end of the day, it’s still a sluggish pace of growth in housing. Inventories are moving only because of low prices. As long as we don’t see a broader economic recovery, there’s no way we’ll see much momentum in housing. This only reinforces the case for additional stimulus.”

MARKET REACTION:

STOCKS: U.S. stock index futures held onto slight earlier gains .N.

BONDS: U.S. Treasury debt prices extended their earlier losses <US/>.

FOREX: The dollar held onto earlier gains versus the euro <FRX/>.

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