Home prices climbed at increased pace in December: Case-Shiller

Home prices in 20 cities rose at the fastest pace in almost a year in the 12 month period through December, while nationwide the gain in values was the biggest since 2014, according to S&P CoreLogic Case-Shiller data reported Tuesday.

The property values index advanced 5.6% from December 2015 after climbing 5.2% in the year through November. The national home-price gauge climbed 5.8% in the 12 months through December, the most since June 2014. The seasonally adjusted 20-city measure rose 0.9% from a month earlier.

A limited number of listings are keeping home values elevated as buyers compete for properties. Figures from the National Association of Realtors showed contract signings for existing homes dropped last month as higher housing prices and a pickup in mortgage rates made purchases less affordable. Nonetheless, solid hiring and a nascent gain in incomes will probably keep potential homebuyer traffic elevated and underpin sales.

"Home prices are rising, but the speed is not alarming," David Blitzer, chairman of the S&P index committee, said in a statement. "One factor behind rising home prices is low inventory."

All 20 cities in the index showed a year-over-year gain, led by a 10.8% advance in Seattle and a 10% increase in Portland, Ore.

Chicago had the biggest month-over-month gain on a seasonally adjusted basis at 1.5%, followed by Seattle and Tampa, Fla., which each posted a 1.4% increase.