S&P reported on Tuesday its Case-Shiller Home Price Index, which tracks home prices in 20 U.S. metropolitan areas, surged 3.5 percent y-o-y in February, following an unrevised 3.1 percent y-o-y increase in January. This was the biggest annual advance in house prices since December of 2018.

Economists had expected an advance of 3.3 percent y-o-y.

Phoenix (+7.5 percent y-o-y), Seattle (+6.0 percent y-o-y), Tampa (+5.2 percent y-o-y) and Charlotte (+5.2 percent y-o-y) recorded the highest y-o-y advances in February. Overall, 17 of the 20 cities reported greater price gains in the year ending February versus the year ending January.

Meanwhile, the S&P/Case-Shiller U.S. National Home Price Index, which measures all nine U.S. census divisions, climbed 4.2 percent y-o-y in February, up from 3.9 percent y-o-y in the previous month.

"The stable growth pattern established in the last half of 2019 continued into February," said Craig J. Lazzara, Managing Director and Global Head of Index Investment Strategy at S&P Dow Jones Indices. However, he noted that today's report covers real estate transactions closed during the month of February, and shows no signs of any adverse effect from the governmental suppression of economic activity in response to the COVID-19 pandemic. "As much of the U.S. economy was shuttered in March, next month's data may begin to reflect the impact of these policies on the housing market", he added.