United States: Home prices inch up in January and reach 18-month high
March 29, 2016
The unadjusted S&P/Case-Shiller 20-city home composite index was virtually unchanged in January compared to the previous month in January. January’s reading marked the fourth month with flat prices and was also in line with market expectations. When adjusted for seasonality, the index rose 0.8% in January over the previous month (December: +0.8% month-on-month).
On an annual basis, home prices edged up from 5.7% in December to 5.8% in January, which represented the highest level since July 2014. According to S&P, 13 of 20 cities registered an increase in prices in January. Portland, Seattle and San Francisco were the cities leading the increase, with another month of double-digit growth in prices.
In a statement, S&P pointed out that, “home prices continue to climb at more than twice the rate of inflation,” adding that, “while low inventories and short supply are boosting prices, financing continues to be a concern for some potential purchasers, particularly young adults and first time home buyers.”
Author: Carl Kelly, Economist