By Shaina Mishkin

Home prices over the past year have kept rising. So, apparently, has prospective buyer optimism.

Home prices measured by the S&P Cotality Case-Shiller index tracking 20 of the nation's large metropolitan areas rose 1.1% in April from one year prior, beating FactSet estimates that called for a 0.9% gain, S&P Dow Jones Indices reported Tuesday morning. On a national level, prices in the same time period rose 0.8%.

The index lags behind other measures of home prices but is watched for its methodology, which is meant to measure monthly price fluctuations without the impact of size or type of home.

Higher prices in the wake of the pandemic-era housing squeeze are still a barrier for potential buyers. Those surveyed for the Bank of America Institute from April 13 to May 10 cited expensive prices as a hurdle delaying their purchase more frequently than in 2025.

Despite the costs, nearly a third of prospective buyers said they were more confident in their ability to buy a home this year, up from 27% in 2025. "Despite real and persistent challenges in the market, buyers and owners are increasingly optimistic, and many are starting to move forward rather than waiting on the sidelines," Matt Vernon, Bank of America's head of consumer lending, said in a statement.

Price growth was muted compared with prior pandemic gains. "The affordability pinch remains a key headwind," Nicholas Godec, S&P Dow Jones Indices' head of fixed income tradables & commodities, wrote in a statement. "In this higher-rate environment, home price growth remains constrained, with housing largely treading water in nominal terms and falling in real terms."

Price growth in the year's second half could be in buyers' favor. The Mortgage Bankers Association's most recent forecast, published on June 22, foresees price growth in the FHFA U.S. House Price Index, a measure similar to Case-Shiller published by the Federal Housing Finance Agency, slowing to 0.6% gains by the end of the year. Growth is expected to remain below 1% throughout 2027, according to the forecast.

Write to Shaina Mishkin at shaina.mishkin@dowjones.com

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