On a quarterly basis, home prices rose 1.2 percent, marking the tenth consecutive quarter of price increases, according to the Federal Housing Finance Agency's House Price Index report. The price appreciation that took place in the fourth quarter was "considerable, but more modest than in recent periods," said Andrew Leventis, principal economist for the FHFA.

After Consumer Financial Protection Bureau (CFPB) Deputy Director Steven Antonakes decried mortgage servicers for not doing enough to mend the industry after the recent housing crisis, one industry leader called his comments "inflammatory and without benefit to the audience." Ed Delgado, president and CEO of the Five Star Institute, believes the deputy director's remarks are not only ill-timed but also counterproductive.

Home buying competition rose over the month of January but was down from last January, according to national real estate brokerage Redfin, which took the year-over-year decline as a sign that low inventory and rising prices are thwarting demand in the housing market. About 58 percent of home offers by Redfin agents encountered a competing offer in January compared to nearly 53 percent in December.

While home sales were down nearly 27 percent over the month, they were down 7.1 percent from January last year, according to the RE/MAX report, which includes data from 52 metros across the nation. “We usually expect to see fewer home sales in the winter months, but January experienced particularly severe storms in large parts of the country, which disrupted appraisals, inspections and closings,” said Margaret Kelly, CEO of RE/MAX.

Housing inventory declined more than 9 percent over the month of January in the 19 markets in which online real estate brokerage Redfin has a presence, according to the company's Real-Time Price Tracker for January. ""A year ago, we didn't think inventory could go any lower, yet we're beginning 2014 with another disappointment,"" Redfin stated in its January report. With the caveat that ""it is too soon to tell,"" the brokerage did offer some optimism regarding inventory in coming months.

The year started off with relatively strong homebuyer interest, but that interest has not translated into actual home purchases, according to the latest Real-Time Demand Pulse released Thursday by Redfin, a national online real estate brokerage. After a normal lull during the holiday season, the number of consumers taking home tours increased 53.8 percent in the first month of the year. Meanwhile, the number of offers made in January is only up 28.7 percent compared to last year's 42.6 percent.

While last year's rising home prices brought relief to many underwater homeowners, allowing many older homeowners with increased net worth to purchase new homes, they also precluded many young first-time buyers from purchasing, according to a report from BBVA Group. ""Older homeowners are increasingly able to purchase a new residence with cash only after they sell their current home,"" said Jason Frederick, an economist for BBVA Compass.

A new report from the Office of the Inspector General of the Federal Housing Finance Agency (FHFA OIG) finds the GSEs continue to purchase loans with red flags. After being directed to develop a uniform collateral data portal to assist in quality control, FHFA OIG says both Fannie Mae and Freddie Mac made billions in purchases last year despite warnings from the portal regarding underwriting standards, property valuations, and even the state of appraisers' licenses.

Homeowners surveyed by Redfin last month expressed greater confidence in the current selling environment, but many remain concerned about the difficulties they may face on the buyers' side of things. Denver Redfin agent Paul Stone captures survey-takers' sentiment, saying, ""Most of my home-selling clients worry the most about what will happen after they sell. With so much competition in the market, they fear they will have to move in with their in-laws if they can't find their next home quickly.""

Last year's housing market was defined by two distinguishing factors: low inventory and rising prices; but both trends began to ease at the end of the year.