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Home Price Growth Slows Further in Latest Case-Shiller Reading

house-graphdownNearly half of the country's top 20 cities saw home prices decline on a monthly basis in November as low inventories and tight mortgage qualification standards continue to hamstring the recovery, according to a popular measure.

The S&P/Case-Shiller Home Price Indices, released Tuesday, shows house prices across all nine of the country's census divisions fell 0.1 percent from October to November. The narrower 10- and 20-city composite indices also dipped, dropping 0.3 percent and 0.2 percent month-to-month, respectively.

"With the spring home buying season, and spring training, still a month or two away, the housing recovery is barely on first base," said David Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices. "Prospects for a home run in 2015 aren't good."

Among the metros tracked in the 20-city survey, Tampa led in growth, posting an increase of 0.8 percent from October. Among those cities faring poorly were Chicago and Detroit, which saw declines of 1.1 percent and 0.9 percent, respectively.

On an annual basis, all three major indices experienced growth, though the 10- and 20-city gauges slowed compared to October at gains of 4.2 percent and 4.3 percent. The National Index, meanwhile, picked up a little bit of steam, accelerating to 4.7 percent growth from October's 4.6 percent.

According to Blitzer, the slowdown in price growth is symptomatic of a weakening recovery struggling with anemic supply levels and "stiff mortgage qualification standards."

"The best hope for housing is the rest of the economy where the news is better," he said. "2014 was a good year for job creation and weekly unemployment claims—good short term indicators—which continue to provide upbeat reports. Consumer confidence, helped by cheap gasoline prices, is strong, and a good GDP number is expected this week."

At the metro level, Miami and San Francisco led in annual growth, posting gains of 8.6 percent and 8.9 percent in the last year. Still, Miami ranked among the list of cities whose 12-month growth rate has dropped the most.

About Author: Tory Barringer

Tory Barringer began his journalism career in early 2011, working as a writer for the University of Texas at Arlington's student newspaper before joining the DS News team in 2012. In addition to contributing to DSNews.com, he is also the online editor for DS News' sister publication, MReport, which focuses on mortgage banking news.
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