Home prices in 20 US cities rose at a slower pace in the year ended in March as the housing market began to weaken at the start of 2014.
The S&P/Case-Shiller index of property values increased 12.4 percent from March 2013, the smallest 12-month gain since July, after rising 12.9 percent in the year ended in February, a report from the group showed Tuesday.
Still-tight lending standards for some Americans and a rise in mortgage rates since mid-2013 have slowed demand, limiting the ability of sellers to keep asking even higher prices.
US House Prices
Tuesday’s S&P/Case-Shiller report also included quarterly figures for the market nationally. Home prices covering all of the US climbed 10.3 per cent in 1Q from the same period in 2013.
Home prices adjusted for seasonal variations increased 1.2 per cent in March from the prior month. Unadjusted prices rose 0.9 per cent.
All 20 cities in the index showed a year-over-year gain, led by a 21.2-per cent climb in Las Vegas and a 20.9-per cent advance in San Francisco. Cleveland showed the smallest year- over-year increase, with prices rising 3.9 per cent. The year-over-year gauge is based on records dating back to 2001.
Policy makers at the US Federal Reserve cited a potential “persistent slowdown” in housing as a downside risk for growth, according to minutes of the April 29-30 policy meeting.