United States: Home prices stabilize in December
February 23, 2016
In December, the unadjusted S&P/Case-Shiller 20-city home price composite index was unchanged over the previous month. The print came in just below both the 0.1% increase observed in November and 0.1% rise the markets had expected.
Home prices rose 5.7% year-on-year in December, which matched the 5.7% increase tallied in November. According to S&P, 13 of the 20 cities reported higher prices in December. Denver, Portland and San Francisco continued to lead the increase, with another month of double-digit annual rise in December.
According to S&P, “while home prices continue to rise, the pace is slowing a bit”. S&P added that, “sparked by the stock market’s turmoil since the beginning of the year, some are concerned that the current economic expansion is aging quite rapidly. The recovery is six years old, but recoveries do not typically die of old age. Housing construction, like much of the economy, got off to a slow start in 2009-2010 and is only now beginning to show some serious strength”.
Author: Carl Kelly, Economist