US home prices rise at the slowest pace in 4 years

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Housing price growth has slowed at its slowest pace since 2015.

Standard & Poor's said on Tuesday that its national S & P CoreLogic Case-Shiller home price index rose 4.3% in January, up from 4.6% a month earlier. It also marked 10 consecutive months of slower price growth. The composite index of the 20 cities recorded an annual gain of 3.6%, but analysts' estimates were 3.8%, compared to 4.1% in December.

"Real estate price increases continue to shrink," said David M. Blitzer, chief executive and chairman of the S & P Dow Jones Indices index committee, in a press release. "From January to January 2014, the S & P CoreLogic Case-Shiller National Index rose 4.3%, two points less than its pace of January 2018. The last time it's progressed as slowly, it was in April 2015. "

"We expect further downward pressure on home price appreciation for a number of reasons. First, the previously published home price indexes (CoreLogic and Zillow) have shown a further weakening of home price appreciation, "wrote Bank of America Merrill Lynch in a recent note. "Second, demand for existing home sales declined in January, with single – family home sales declining 1.8% from one month to the next, or 8.4% from the previous year. one year to the next. We expect price appreciation to slow throughout this year and next as the market continues to rebalance.

<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The slowdown in price growth was more pronounced in Cities In Seattle, for example, annual price increases dropped from 12.8% to 4.1% from January 2018 to January 2019 and in San Francisco, annual price increases went from 10.2% to 1%. 8% over the same period Seattle had led the 20-City Composite until Las Vegas dethroned it in June& nbsp; as the hottest city based on the growth of house prices. Vegas again dominated the city of 20 in January, recording an annual gain of 10.5%. "Data-reactid =" 26 "> The slowdown in price growth has been more pronounced in cities that had recorded record annual gains until recently, for example, in Seattle, annual price increases fell from 12.8% to 4.1% from January 2018 to January 2019 and in San Francisco, annual price increases increased from 10.2% to 1.8% over the same period. 20th City Composite until Las Vegas dethroned June being the hottest city due to rising house prices, Vegas still dominated 20-cities in January, registering an annual gain 10.5%.

"In 16 of the 20 cities tracked, price increases were smaller in January 2019 than in January 2018," Blitzer said.

<p class = "canvas-atom-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Separately, Tuesday morning, the US Department of Commerce reported that & nbsp;US housing starts fell 8.6% to 1.16 million units last monthAnalysts missed expectations of $ 1.21 million and less than January's seasonally adjusted 1.27 million units. Housing permits, which are a sign of a future housing activity, fell by 1.6% to reach an annual rate of 1.30 million. Rising labor costs and tighter labor markets in the construction sector appear to put pressure on builders. On Tuesday morning, the US Commerce Department announced that US housing starts fell 8.6 percent to 1.16 million last month. analysts were establishing at 1.21 million and below 1.27 million units seasonally adjusted in January. Building permits, which are a sign of future activity in the sector of housing, fell by 1.6% to reach an annual rate of 1.30 million, putting pressure on builders.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "But there are signs of hope that the housing market may be gaining momentum after a sluggish 2018 year & & nbsp;Existing home sales in February increased 11.8%, reaching a seasonally adjusted annual rate of 5.51 million a month earlier, according to the National Association of Realtors. The activity was fueled by the increase in wages and low mortgage rates. In fact, & nbsp;Mortgage rates hit their lowest level in a year& nbsp; and should remain weak as & nbsp;Federal Reserve recently reported& nbsp; that he is not planning to raise rates in 2019. At the beginning of this year, the sentiment of homebuilders has also improved. In March, the housing market index of the National Association of Home Builders / Wells Fargo was unchanged. "Data-reactid =" 29 "> But there are signs of hope that the housing market could pick up momentum after a slowdown in 2018. Existing Home Sales In February , the National Association of Realtors had recorded an annual increase of 5.51 million a year in February, up 11.8%, due to rising wages and low mortgage rates, which have hit their lowest level in a year and are expected to remain at low levels as the Federal Reserve recently announced that it was not planning to raise rates in 2019. Early in the year, Home builders also improved / The Wells Fargo housing market index remained unchanged.

Amanda Fung is a writer at Yahoo Finance.

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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The slowdown in the US real estate market will have "a small glimmer of hope" in 2019"data-reactid =" 35 ">The slowdown in the US real estate market will have "a small glimmer of hope" in 2019

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