The U.S. National Home Price Index increased 4.5 percent between January 2014 and January 2015, compared with December 2014’s annual increase of 4.6 percent, according to the S&P Home Price Indices.
Both the 10-City and 20-City Composites saw higher year-over-year increases in January, 4.4 percent and 4.6 percent, than in December, 4.3 percent and 4.4 percent, respectively.
Annual home price gains in January were highest in Denver and Miami, with increases of 8.4 percent and 8.3 percent. Fourteen cities had annual gains in January that were higher than year-over-year gains in December 2014. Six cities reported declines.
“The combination of low interest rates and strong consumer confidence based on solid job growth, cheap oil and low inflation continue to support further increases in home prices,” said David Blitzer, managing director and chairman of the Index Committee for S&P Dow Jones Indices, in the report.
Month-over-month, the National Index declined 0.1 percent in January 2015, its fifth consecutive month reporting a decrease.
The 10-City and 20-City Composites had “virtually flat” month-over-month changes in January 2015, according to S&P.
“Despite price gains, the housing market faces some difficulties. Home prices are rising roughly twice as fast as wages, putting pressure on potential homebuyers and heightening the risk that any uptick in interest rates could be a major setback,” Blitzer said.
