Home Prices in 20 U.S. Cities Increase at Slower Pace

[Purveyor]

Source: Bloomberg

By Victoria Stilwell Feb 25, 2014 10:53 AM ET

Home prices in the U.S. climbed at a slower pace in the year through December, pointing to a moderation in the market that will help keep more properties within reach for prospective buyers.

The S&P/Case-Shiller index of property values in 20 cities rose 13.4 percent from December 2012 after increasing 13.7 percent in the year ended in November, the group said today in New York. It was the first deceleration since June. The gain matched the median estimate of 33 economists surveyed by Bloomberg.

Price appreciation is slowing as rising mortgage rates combined with harsh winter weather to cool home purchases over the past few months. Smaller increases mean more homes will remain affordable as the labor market improves, helping maintain the rebound in residential real estate that has boosted growth.

“The housing recovery continues, but perhaps not as vigorously as it did in the first half of last year,” said Michael Feroli, chief U.S. economist at JPMorgan Chase & Co. and the best forecaster of the home-price index during the past two years, according to Bloomberg calculations. “Even so, appreciation trends still look pretty good even though they may not be as strong as they were.”

Read more: http://www.bloomberg.com/news/2014-02-25/home-prices-in-20-u-s-cities-rose-at-slower-pace-in-december.html

[grahamhgreen]

1. The hoarding class has shot their wad at the housing market, and now realize if people don't have

Middle class jobs, they can't buy houses.

I hope some of these flippers lose their shirts.

Basically, they inflated an artificial housing bubble by pouring investment capital into housing.

[MindMover]

2. cant afford their rent either ...

[OneCrazyDiamond]

3. I hope some of these flippers lose their shirts.