Though prices and sales of existing homes are close to normal, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices David Blitzer says “construction and new home sales remain weak.”
“The softness in housing is despite favorable conditions elsewhere in the economy: strong job growth, a declining unemployment rate, continued low interest rates, and positive consumer confidence,” he adds.
The most recent S&P/Case-Shiller monthly home price index for December indicates house prices increased by 4.6 percent year-over-year.
The report says that nine cities reported monthly increases in prices. Miami and Denver led all cities in December with increases of 0.7 percent and 0.5 percent respectively. Chicago and Cleveland offset those gains with decreases of -0.9 percent and 0.5 percent respectively.