Home Price Increases Continue to Slowdown
The S&P/Case-Shiller Home Price Indices – considered the leading gauge of U.S. home prices – show increases continuing to slow. According to the most recent release, home prices rose 9.3 percent year-over-year, down from the 10.8 percent increase reported in the last release. David M. Blitzer, chairman of the index committee at S&P Dow Jones Indices, said home prices rose at their slowest pace since February of last year. The slowing pace of price increases is due, in part, to rising inventory levels as more homeowners put their homes up for sale. Still, Blitzer says recent housing data has been mixed, with prices and existing-home sales showing improvement while new home sales and construction lag behind. However, with continued improvement in the broader economy and job market, most analysts believe housing activity is going to pick up through the end of the year. On a month-to-month basis, home prices were up 1.1 percent. Also, all 20 cities included in the index posted increases for the second-straight month.
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