Home prices rise more than expected in December

Home prices in December rose more than expected, according to the latest Case-Shiller home price index.

Prices rose 0.87% in December when compared to the prior month, topping expectations for a 0.6% increase.

Over last year, prices rose 4.46% against estimates for a 4.3% increase.

The fastest growing markets over the prior year were were San Francisco and Miami, where prices rose 9.5% and 8.4%, respectively.

In a release, David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones
Indices said:

"The housing recovery is faltering. 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."

Here's the chart from S&P showing the slowing pace of increasing home prices.