Home prices rise more than forecast in December

Tue Feb 25, 2014 9:35am EST

People walk near new single family homes under construction in San Marcos, California October 25, 2013. REUTERS/Mike Blake

People walk near new single family homes under construction in San Marcos, California October 25, 2013.

Credit: Reuters/Mike Blake

(Reuters) - U.S. single-family home prices in December rose slightly more than expected from the previous month, a closely watched survey showed on Tuesday.

The S&P/Case-Shiller composite index of 20 metropolitan areas gained 0.8 percent on a seasonally adjusted basis. A Reuters poll of economists forecast a rise of 0.6 percent.

The 20-city composite index rose 13.4 percent year-on-year.

"The S&P/Case-Shiller Home Price Index ended its best year since 2005," David M. Blitzer, chairman of the Index Committee at S&P Dow Jones Indices, said in a statement.

"However, gains are slowing from month-to-month and the strongest part of the recovery in home values may be over."

The 10-city composite index also rose 0.8 percent in December on a seasonally adjusted basis.

On a non-seasonally adjusted basis, the monthly 10-city gauge was unchanged while the 20-city measure dipped 0.1 percent.

(Reporting by Rodrigo Campos; Editing by Meredith Mazzilli)

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Comments (3)
Vuenbelvue wrote:
I thought they were running out of water in Cali. More houses equal more people equal more water usage.

Feb 25, 2014 10:02am EST  --  Report as abuse
AlkalineState wrote:
“Home prices rise more than forecast in December”

As people decide that freezing your ass off in a camper was only a good idea on paper. As coldest winter in recent history sets in, retirees, surfers and truck-cab-dwellers of the North Dakota oil fields…. suddenly re-think their previous decisions.

Feb 25, 2014 11:52am EST  --  Report as abuse
PaulBradley wrote:
@Vuenbeivue wrote: “More houses equal more people equal more water usage.”

That is only true IF people migrate to California from other states and buy a house. However, if it’s a case or population ‘density’ segregation per one house – e.g. California larger family segregate when, for example, married daughter with her husband, that lived in a house of her parents . . . buys a new house and moves out from their parents’, then the water consumption stays the same.

However, in any case, economy gains with additional purchasing of household goods needed when you buy a new house – - i.e. things that were shared before, as for example, TV, refrigerator, washing/dryer, etc.

Feb 25, 2014 1:47pm EST  --  Report as abuse
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