U.S. Home Prices Rise in December
- U.S. home prices, as measured by the S&P/Case-Shiller National HPI, ended 2015 on solid footing. The National HPI picked up 0.8 percent in December and the 10-City and 20-City HPIs both rose modestly. U.S. home prices ended the year up 5.4 percent, and the 20-city index posted a 5.7 percent gain.
- While U.S. home price appreciation seems to be stabilizing near 5 percent, the rise in home prices continues to outpace wage growth, creating an affordability hurdle in many markets.
Regional Variations More Apparent in 2015
- There is a growing divide in home price appreciation across the country. Prices are rising rapidly in urban city centers with the strongest job gains, but are lagging in areas with modest growth.
- Notably, home prices in Portland, San Francisco, and Denver reported staggering double digit gains in 2015, largely thanks to burgeoning demand and robust job growth. Cleveland, Chicago and Washington, D.C., however, saw home prices rise less than 3 percent over the year.
Read the complete commentary here: sp-caseshiller-20160223.