Boston continued to follow the pack in the latest Case-Shiller Home Price Index.
Home prices in the Boston metro area put up mixed numbers in the latest Case-Shiller Home Price Indices, falling 0.2 percent from November to December but rising 3.8 percent from Dec. 2013.
It was another month of solid price growth for Boston, which is actually what the market could use; after all, given how spectacular price increases have been in some areas, a more modest market would certainly be welcome for moderate income homebuyers in the Boston area.
Modest Price Increases Nationwide
Nationwide, the situation was a modest (albeit positive) one:
- Both the 10- and 20-City Composites, which track most of the nation’s largest housing markets, rose 4.3 and 4.5 percent year-over-year, respectively; both increases are stronger than November’s yearly increases.
- Both composites were even positive monthly, rising 0.1 percent from November to December.
- Overall, nine cities saw higher monthly figures, compared with six seeing negative figures and five seeing flat numbers.
Blitzer – “Housing Recovery is Faltering”
David M. Blitzer, the managing director and chairman of the Index Committee at S&P Dow Jones Indices, said that despite December’s price increases, other sectors of housing are showing clear weakness.
“The housing recovery is faltering,” Blitzer said. “While prices and sales of existing homes are close to normal, construction and new home sales remain weak. Before the current business cycle, any time housing starts were at their current level of about one million at annual rates, the economy was in a recession. 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.”