House prices in the US are on the rise says a housing market index.
The data, on the heels of a decision by the Federal Reserve on whether or not to boost stimulus spending, showed that home prices rose from April to May in 20 cities tracked by the Standard & Poor's/Case-Shiller index.
According to the Stamford Advocate, the biggest gains were seen in Chicago (4.5 percent), Atlanta (4 percent) and San Francisco (3.9 percent) with the smallest gains in Detroit, Charlotte and San Diego.
The Associated Press said that the increasing sales numbers and tighter inventories of housing may be proof of a modest housing market recovery.
The news may also strengthen the argument of those who say that further stimulus spending is not needed.
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The Financial Times reported that the S&P/Case-Schillar index rose a seasonally adjusted 0.9 percent from April to May.
“This is great news that certainly bucks the trend of other data that points to an economy that’s slowing,” said Ellen Zentner, a senior US economist at Nomura Securities International Inc., according to Bloomberg.
“It’ll be a salve for a lot of U.S. households if we continue to see price gains in housing.”