United States: Home prices fall for first time in a year
January 28, 2014
In November, the unadjusted S&P/Case-Shiller 20-city home price composite index fell 0.1% over the previous month, which marked the first decline in house prices since November 2012. The reading was below market expectations of a 0.2% rise and also below the 0.2% increase tallied in October.
On an annual basis, home prices rose 13.7% over the same month last year, which was a slight increase compared to the 13.6% rise recorded in October. The reading marks the highest level since February 2006. Despite the strong performance in recent months, prices still remain 19.6% below the July 2006 peak.
S&P emphasized that housing prices continue to rise, although the overall pace is slowing; monthly rates decelerated in 11 of the 20 cities surveyed between October and November. According to S&P, "prices typically weaken as we move closer to the winter. Beginning June 2012, we saw a steady rise in year-over-year increases. November continued that trend with another strong month although the rate of increase slowed."
Author: Carl Kelly, Economist