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Case-Shiller home prices rise more than expected

Mar 29, 2016, 18:30 IST

S&P Dow Jones Indices

Home prices rose more than expected in January, according to the S&P/Case-Shiller index.

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Prices in 20 major metropolitan areas rose 0.8% compared to December, and 5.75% year-on-year.

Portland, Seattle and San Francisco recorded the biggest gains compared to the prior year.

The 20-city index was 182.56 during the month, down from 182.59.

Economists had forecast that the 20-city index was 182.74 during the month, while the month-on-month change was +0.7%, and +5.75% year-on-year, according to Bloomberg.

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"Portland led the way with an 11.8% year-over-year price increase, followed by Seattle with 10.7%, and San Francisco with a 10.5% increase," the release noted Tuesday. "Eleven cities reported greater price increases in the year ending January 2016 versus the year ending December 2015."

Bank of America Merrill Lynch economists wrote in a preview: "Home price appreciation was exceptionally strong at the end of 2015, implying momentum heading into this year. Moreover, we see signs that the housing market remains lean, with low levels of inventory and fast turnover of the housing stock."

S&P Dow Jones Indices noted that the year-on-year rise is at twice the pace of inflation.

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