By Manuel Gutierrez, Consulting Economist to NKBA

Existing U.S. home prices are 20.6 percent higher than a year ago, the second consecutive month of 20 percent annual gains.

• Prices rise a sharp 2.1 percent vs. the previous month, also a record.
• The most recent annual increase is more than five percentage points higher than peak gains during the sub-prime housing boom of 2006.
• The National Association of Realtors reports more than 1 in 4 homes were cash purchases in April, suggesting considerable activity by investors and speculators.
• Drilling down to the metro level, Tampa home prices rose an astounding 35 percent over the same period last year, with Miami and Phoenix close behind, each with gains of 32 percent. Lagging are Minneapolis (+12 percent), Chicago and Washington, DC (+13 percent) and New York (+14 percent).
• Condominium price increases are behind those of single-family homes in each of the five metros covered by the Case-Shiller index, with gains in both Chicago and San Francisco half of those by their single-family counterparts.
• Most experts believe that rising interest rates will soften demand for housing and slow the rising price trend.

“Year-over-year home prices are up at least 20 percent for the second straight month.”