Home Prices in 20 U.S. Cities Post Smallest Gain in Six Years

The S&P CoreLogic Case-Shiller index of property values posted growth of 3.6 percent in January, down from 4.1 percent in December.

(Bloomberg)—Home prices in 20 U.S. cities registered their smallest gains since late 2012, decelerating for a 10th month in January as buyers held out for more affordable properties.

The S&P CoreLogic Case-Shiller index of property values increased 3.6 percent from a year earlier, down from 4.1 percent in the prior month and below the median estimate of economists, data showed Tuesday. Nationally, home-price gains slowed to 4.3 percent, the lowest since 2015.

Key Insights

The data indicate that the 2018 slump in housing extended to the start of this year amid the longest-ever government shutdown and still-elevated home prices. Potential buyers may have remained cautious after stocks had their worst December since the Great Depression, and a separate report this month showed sales of new U.S. homes fell to a three-month low in January. At the same time, other data suggest the market has since picked up: A report last week showed sales of previously owned U.S. homes rebounded in February to the fastest pace in almost a year. The seasonally adjusted 20-city index gained 0.1 percent from the prior month, less than projected. Economists watch the year-on-year gauge to better track trends, and home-price gains have slowed enough that they’re roughly in line with wage increases. A separate report Tuesday showed that U.S. new-home groundbreakings fell in February by the most in eight months on a drop in single-family homes, suggesting buyers and builders remain wary despite higher wages and a drop in mortgage rates.

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