Home prices continue to flatten nationally, according to the most recent results of the Case-Shiller U.S. National Home Price Index. The index – which measures prices on a three-month basis – found year-over-year gains of just 0.9 percent through the end of January. That’s down from a 1.1 percent gain the previous month. Nicholas Godec, CFA, CAIA, CIPM, Head of Fixed Income Tradables & Commodities at S&P Dow Jones Indices, says the results are evidence that prices continue to cool. “January’s results show home price gains continuing to cool …” Godec said. “Splitting the year into two halves sharpens the picture. The National Index rose 2.2 percent over the first six months of the period, then fell 1.3 percent over the most recent six – a swing that explains why annual gains have compressed to under 1 percent despite prices remaining historically elevated.” Still, national trends only tell part of the story. Regionally, prices continue to increase at a faster pace in the Northeast and Midwest, where cities like Chicago and New York were still seeing a nearly 5 percent annual gain. (source)
