United States: Home prices flat in February, overall trend continues to slow
April 29, 2014
In February, the unadjusted S&P/Case-Shiller 20-city home price composite index was flat over the previous month. The reading, which matched market expectations, follows the 0.1% decline registered in the three months prior.
On an annual basis, home prices rose 12.9% over the same month of the previous year, which was down from the 13.2% rise recorded in January. According to S&P, the double-digit gains in home prices contrast data in other housing market categories: sales of new and existing homes are weak and housing starts are faltering. Moreover, despite the strong performance in recent months, prices still remain 19.8% below the July 2006 peak.
S&P emphasized that while housing prices continue to rise, the overall pace is slowing; monthly rates decelerated in 13 of the 20 cities surveyed between January and February. S&P added that, “five years into the recovery from the recession, the economy will need to look to gains in consumer spending and business investment more than housing.”
Author: Carl Kelly, Economist