US Home prices perk up in January – Wells Fargo

By FXStreet Analysts from Wells Fargo, explained that US home prices rose in line with expectation in January, with all three S&P/Case-Shiller Home Price Indices rising modestly during the month.

Key Quotes:

“The S&P/Case-Shiller Home Price Index rose in line with expectations in January. The National HPI ticked up 0.5 percent over the month, pushing the year-over-year rate up to 5.4 percent. The 10-City and 20-City Composite indices rose a slightly larger 0.7 percent and 0.8 percent, respectively.”

“Low inventories were cited by S&P Dow Jones Indices as the primary driver for home price appreciation. There is currently just a 4.4 month’s supply of resales on the market.”

“Price appreciation continues to be strongest in rapidly growing Western markets, most of which are severely supply constrained.”

“While all 20 cities in the S&P/Case-Shiller Composite showed year-to-year gains, price appreciation has clearly moderated in many gateway markets. Slower growth in Europe, China and Latin America, combined with the stronger U.S dollar has cut foreign demand, particularly in New York City and Miami. Price gains have also moderated in Chicago and Washington D.C.”.
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Source:: FX Street