Home Prices in 20 Cities Rise at Slower Pace in December
Home prices in 20 major U.S. cities rose in December at a slower pace, according to Standard & Poor’s.
S&P’s Case-Shiller index said property prices rose 13.4% from December 2012 in the 20 cities, after a 13.7% increase in November. The rise matched the median estimate by economists Bloomberg News reported.
“There are some concerns things might become a little too bubbly if they continue at the recent pace,” Scott Brown, chief economist at Raymond James & Associates Inc., told Bloomberg. “You’re seeing a lot of people getting priced out of the market as home prices increase, and mortgage rates are up relative to where they were a year ago.”
Smaller increases mean more homes will remain affordable as the labor market improves, Bloomberg reported.
Adjusting for seasonal variations, the Case-Shiller index rose 0.8% from December after a 0.9% rise the prior month.
“Gains are slowing from month-to-month, and the strongest part of the recovery in home values may be over,” David Blitzer, chairman of the S&P index committee, said in a statement. “Higher home prices and mortgage rates are taking a toll on affordability.”
