United States: Home prices continue to rise in January
March 26, 2013
In January, the unadjusted S&P/Case-Shiller 20-city home price composite index rose 0.1% over the preceding month, which was just in line with market expectations. The reading follows a 0.2% increase in December.
On an annual basis, home prices rose 8.1% over the same month last year. The reading marks an improvement over the 6.8% increase recorded in December and represents the largest pick-up in home prices in six years. However, despite the increase, home prices still remain 29.1% below the peak registered in July 2006. Out of the 20 cities surveyed, only Detroit exhibited lower prices over the same month last year, while Phoenix kept showing the largest annual increase.
S&P remained very optimistic, indicating that "economic data continues to support the housing recovery" while adding that although there was a small increase in foreclosures, numbers are still down 25% year-on-year. According to S&P, "steady employment and low borrowing rates pushed inventories down to their lowest post-recession levels."