Home prices rose more than expected in January, according to the S&P/Case-Shiller index.
Prices in 20 major metropolitan areas increased 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.
Rising home prices, which have been driven by low inventories and strong demand, pose “some challenges for home buyers, particularly first-time and lower-income buyers, struggling to find a home that fits both their needs and budget,” wrote Zillow chief economist Svenja Gudell in a statement.
But as long as wages and jobs growth continue rising, there isn’t much to worry about regarding the housing market right now, he said.
“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.”
S&P Dow Jones Indices noted that the year-on-year rise was twice the pace of inflation.
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