That’s the smallest annual gain since August, according to the S&P/Case-Shiller Home Price Index.
“Price appreciation on a year-over-year basis has eased in recent months as higher mortgage rates and unusually severe winter weather slowed demand for properties,” Victoria Stilwell reported for Bloomberg News. “Smaller increases in asking prices will help improve affordability, providing support for the residential real-estate market, which has been a source of strength for the economy.”
Home prices climbed 25 percent in Las Vegas year-over-year, the biggest jump among the 20 areas. Las Vegas home prices rose for the 22nd consecutive month in January, though they’re still 45 percent below their peak in August 2006, before the biggest economic downturn since the Great Depression took hold, according to a release yesterday from S&P Dow Jones Indices.
Las Vegas and San Francisco, where prices rose 23 percent, were the only two cities posting annual gains of over 20 percent.
San Francisco, California’s fourth most-populous city, has outpaced Silicon Valley in job creation, “driving up living costs and igniting a backlash over a widening wealth gap,” Alison Vekshin reported for Bloomberg News.
“The median price paid for a home in San Francisco was $945,000 in February, increasing 34.9 percent from $700,500 in a year, according to DataQuick, a San Diego-based real-estate data provider,” Vekshin wrote.
In Washington, the index rose 9.2 percent during the one-year period.
The chart above includes the year-over-year home price gains in metropolitan areas that comprise S&P/Case-Shiller’s 10-city index, which rose 13.5 percent overall. The 20-city index includes the 10 on the chart plus Atlanta, Charlotte, Cleveland, Dallas, Detroit, Minneapolis, Phoenix, Portland, Seattle and Tampa.