US home prices score solid gains in December
Washington – US home prices climbed again in December in a market underpinned by easy credit and tight supplies, according to the S&P/Case-Shiller price data released Tuesday.
The price index for 20 major US cities rose 0.8% from November for a 5.7% year-over-year rise.
The highest annual gains among the 20 cities continued to be in Portland, San Francisco and Denver, all reporting double-digit increases in December, led by Portland at 11.4%.
Not seasonally adjusted, the 20-city index was unchanged from November, when prices rose 0.1% from October.
“While home prices continue to rise, the pace is slowing a bit,” said David Blitzer, head of the Index Committee at S&P Dow Jones Indices.
Blitzer noted that housing construction was recently showing “some serious strength” and rising home prices should encourage further home building, which would potentially ease the upward price pressures from tight inventory.
As of December, the average home price in the 20-city index was back to its early 2007 levels, and about 13% below the June/July 2006 peaks.
The national index, covering all US markets, ended 2015 with a 5.4% year-over-year gain.