US home prices rise in January: S&P/Case-Shiller

[NEW YORK] US single-family home prices rose in January from a year earlier, led by strong increases in the South and West, a closely watched survey said on Tuesday.

The S&P/Case Shiller composite index of 20 metropolitan areas gained 4.6 per cent in January on a year-over-year basis, slightly outpacing December's downwardly revised gain of 4.4 per cent. This was also above a Reuters poll of economists that forecast a rise of 4.5 per cent.

Denver and Miami reported the highest year-over-year gains, with prices increasing by 8.4 per cent and 8.3 per cent, respectively, over the last 12 months. Dallas ranked third with a 8.1 per cent gain and San Francisco was fourth with a 7.9 per cent increase.

"The combination of low interest rates and strong consumer confidence based on solid job growth, cheap oil and low inflation continue to support further increases in home prices," said David Blitzer, chairman of the Index Committee for S&P Dow Jones Indices.

REUTERS