Home prices saw a slight increase in nine cities covered by the S&P/Case-Shiller Home Price Indices in December.
Both the 10-City and 20-City Composites saw year-over-year increases in December compared to November.
The 10-City Composite gained 4.3% year-over-year, up from 4.2% in November. The 20-City Composite gained 4.5% year-over-year, compared to a 4.3% increase in November.
The S&P/Case-Shiller U.S. National Home Price Index, which covers all nine U.S. census divisions, recorded a 4.6% annual gain in December 2014 versus 4.7% in November.
“The for-sale housing market made great strides toward ‘normal’ in 2014, as runaway appreciation cooled markedly and negative equity fell significantly. But anyone looking to see how far from truly ‘normal’ the market remains need look no further than the red-hot rental market, and its implications on the broader housing market going forward,” said Zillow Group (Z) Chief Economist Stan Humphries. “Many current renters could likely realize significant monthly savings by buying a home now and taking advantage of terrific affordability driven by low mortgage rates and home prices that remain below peak in most areas.”