US home prices surged 1.0 percent in March over February as the economy exited a winter chill, according to the S&P/Case-Shiller index Tuesday.

While the 20-city price index was stronger in the month, the year-on-year price gains held steady at a five percent annual pace.

It was the 35th straight month of gains, with boom cities San Francisco (+ 10.3 percent year on year) and Denver (+10.0 percent) showing the best improvement.

Meanwhile prices slipped slightly in New York.

David M. Blitzer, managing director of the Index Committee for S&P Dow Jones Indices, downplayed worries of a bubble after such a long climb upward.

"I would describe this as a rebound in home prices, not bubble and not a reason to be fearful," he said in a statement.

"The annual rate of increase halved in the last year... Home prices are currently rising more quickly than either per capita personal income (3.1%) or wages (2.2%), narrowing the pool of future home-buyers."

"All of this suggests that some future moderation in home prices gains is likely."