The annual rates of gain for United States home prices slowed in the 10-City and 20-City Composites, according to the latest S&P/Case-Shiller Home Price Indices, which considers data from February 2013 to February 2014. The 10-City Composite posted 13.1 percent and the 20-City Composite 12.9 percent. Thirteen of the 20 cities declined in February.
"The annual rates cooled the most we've seen in some time," said David M. Blitzer, chairman of the index committee at S&P Dow Jones Indices, in a statement.
Month-over-month, the composites remained relatively unchanged. The largest decline was Cleveland, at 1.6 percent, followed by Chicago and Minneapolis at -0.9 percent. Prices rose in 19 cities when data was seasonally adjusted, but most of them at a slower pace than in January, Blitzer said.
Blitzer also said that other housing indicators show a weak market, specifically mentioning that new and existing home sales have flatlined or are down, and the housing starts recovery is "faltering."
Some analysts blame the weakness on an increase in mortgage interest rates in May of last year, while others point to the difficulties in qualifying for loans and low consumer confidence. Ultimately, Blitzer said, the result is less demand, fewer homes being built.
"Five years into the recovery from the recession, the economy will need to look to gains in consumer spending and business investment more than housing," he said. "Long overdue activity in residential construction would be welcome, but is certainly not assured."
