Market Update: Home prices rose 5.7% year-over-year

This morning’s Case-Shiller Home Price Index for December reported that home prices rose 5.7 percent year-over-year, and was unchanged from the previous month in the 20-city index. Quicken Loans vice president Bill Banfield offers the following comments on the report:

“The continued deceleration of price gains is likely to continue as prices normalize in much of the country. Prospective homebuyers are having trouble keeping up with price increases that outpace inflation and average wage growth. However, the especially tight housing markets in the west could see sustained growth as long as the number of prospective homebuyers continue to outnumber available homes.”

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