American home prices are slowly growing for 4 years

Housing price inflation has slowed to its slowest pace since 2015.

On Tuesday, Standard & Poors said its S & P CoreLogic Case-Shiller's national housing price index reported an annual growth of 4.3% in January, from 4.6 % one month earlier. It also marked 10 consecutive months of weakening inflation. The 20-City Composite had an annual gain of 3.6%, lacking analysts' estimates of 3.8%, down from 4.1% in December.

"The house price gains continue to shrink," said David M. Blitzer, executive director and chairman of the Index Committee on the S&P Dow Jones indices, in a press release. "In January to January, the S&P CoreLogic Case-Shiller National Index increased 4.3%, two percentage points slower than the pace in January 2018. The last time it went slowly was slow in April 2015."

"We are expecting further downward pressure on housing prices for a couple of reasons. First, previously published house price indices (CoreLogic and Zillow) showed further depreciation of home inflation, on balance," Bank of America Merrill Lynch wrote in a recent note. "Secondly, the demand for the home market softened in January, as the sale of detached houses fell by 1.8% a month, or 8.4% the following year. We look forward to expecting that the price increase will slow slowly throughout this year and as the market continues to balance. "

<p class =" canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content = "The decline in inflation was more pronounced in cities that had until recently recorded record gains. For example, in Seattle, inflation rose from 12.8% to 4.1% From January 2018 to January 2019, and San Francisco saw annual price increases shrink from 10 , 2% to 1.8% over the same time period, Seattle had led the 20-City Composite to Las Vegas dethroned it in June & nbsp; as The hottest city based on housing price growth. again in January, and recorded an annual gain of 10.5%. "data-response time =" 26 "> The decline in inflation was more pronounced in cities if at last had seen record high gains. For example, in Seattle, annual gains from 12.8% to 4.1% from January 2018 to January 2019 and San Francisco saw annual price increases shrink from 10.2% to 1.8% over the same period. Seattle had led the 20-City Composite to Las Vegas fell in June as the hottest city based on the rise in home prices. Vegas led the 20th city again in January and recorded an annual gain of 10.5%.

"In 16 of the 20 cities that were tracked, the price gain was less in January 2019 than in January 2018," Blitzer said.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Separately, Tuesday morning, the US Commerce Department reported that & nbsp; US housing began to fall 8.6% to 1.16 million units last year lacking analysts' expectations of 1.21 million and below seasonally 1.27 million units in January. on future housing activity, fell 1.6% at an annual rate of 1.30 million. Increasing labor costs and a tight construction market look like putting pressure on builders. "Data Reaction =" 28 "> Separately, Tuesday morning, the US Department of Commerce reported that US housing began declining 8.6% to 1.16 million units last month, missing analysts' expectations of 1.21 million and seasonally adjusted 1.27 million units in January. Housing permit, which is a sign of future housing activity, fell 1.6% at an annual rate of 1.30 million. Rising labor costs and a tight construction labor market seem to put pressure on builders.

<p class = "canvas-textile textile Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "But there are signs of hope that the housing market can gain some momentum after a weak 2018. Existing housing sales in February rose 11.8% and reached a seasonally adjusted annual rate of 5.51 million from a month earlier, according to the National Association of Realtors. Increased wages and low mortgage rates In fact, mortgage rates are at their lowest level in one year and are expected to remain at low levels when the Federal Reserve recently signed and that it does not plan to raise rates by 2019. At the beginning of In the year, the National Association of Home Builders / Wells Fargo was the housing market index unchanged. "data-response time =" 29 "> But there are signs of hope that the housing market may gain some momentum after a weak 2018. Existing housing sales in February rose 11.8% and achieved a season adjusted annual interest rate of 5.51 million from a month earlier, according to the National Association of Realtors. The activity was driven by increased wages and low mortgage rates. In fact, mortgage rates have hit their lowest levels for a year and are expected to remain at low levels, as the Federal Reserve recently signaled that it has no plans to raise rates by 2019. At the beginning of the year, the resident builder's sentiment also increased. In March, the National Association of Home Builders / Wells Fargo housing market index remained unchanged.

<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – Sm Mt (0.8em) – Amanda Fung is the editor of Yahoo Finance. " data-response time = "30"> Amanda Fung is the editor of Yahoo Finance.

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