Home Prices Continued to Grow in January

The 20-City Case-Shiller Composite Index increased 5.7 percent year-over-year in January, the same as in December. The 10-City Composite Index increased by 5.1 percent from the previous year, also the same increase as in the previous month. The National Index, which covers all nine census divisions increased 5.4 percent annually.

On a seasonally adjusted monthly basis, the National Index, 20-City Composite, and 10-City Composite all remained unchanged during January.

“While low inventories are boosting prices, financing continues to be a concern for some potential purchasers, particularly young and first time home buyers,” said David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. “The issue is availability of credit for people with substantial student or credit card debt. While rising home prices are certainly a factor in deterring home purchases, individual financial positions are more important than local housing market conditions.”

Home prices rose in eleven of the twenty cities covered by the index, but fell in eight cities. San Francisco and Minneapolis saw home prices fall by 0.7 percent and 0.5 percent respectively, while Portland, San Diego and Miami saw prices increase by 0.4 percent.

Read the S&P release.