Two major indicators of home price trends showed a slowing momentum for home prices in December. The S&P Case Shiller 10 and 20 city indices reported that of 20 cities tracked, home prices were lower in December than for November.
Case-Shiller’s seasonally adjusted month-to month reading showed that home prices rose by 0.4 percent as compared to 0.4 percent in November.
David Blitzer, chairman of the index committee at S&P Dow Jones Indices, said that “Gains are slowing from month-to-month and the strongest part of home price recovery may be over.” He also noted that seasonally adjusted data was showing a loss of momentum for home prices.
December home prices posted a year-over-year gain of 1.3 percent, down from November’s year-over-year reading of 1.4 percent. December’s reading reflected the highest year-over-year increase in home prices since 2005.
Analysts note that a slower pace of increasing home prices may allow more buyers to enter the market, and may also encourage more buyers to list their properties for sale. This would increase inventories of available homes and relieve pent-up demand for homes.
Although home price growth is cooling off, average home prices remain 20 percent below their pre-recession peak in 2006.
Another factor in slower growth of home prices is regional differences in the rate of economic recovery. Cities including Dallas, Texas and Denver, Colorado recently set records for escalating home prices.
Five states including Florida and Michigan accounted for almost half of foreclosures completed during 2013. Slow job growth and poor winter weather were also blamed for slower gains in home prices.
New mortgage rules and relatively strict mortgage lending standards may continue to dampen housing markets, but there is some good news as some lenders are easing credit standards.
The Case-Shiller and FHFA measures are both used to track home price trends, but they are separate indices and may not always present results in exactly the same way. Readers should view them as complementary indicators that can reflect different approaches to measuring price changes, even when both point to similar overall market direction.
The FHFA index has its own coverage scope, which is one reason it can differ from Case-Shiller in reported results and interpretation. When comparing the two measures, readers should keep in mind that differences in coverage can affect how each index reflects national and regional home price movements.
Date and data-period inconsistency
This part of the article references December data, a 2014 outlook, and quarterly figures together. Readers should note that mixing monthly, quarterly, and forward-looking periods in one discussion can create confusion unless each timeframe is clearly identified.
Date and timeframe consistency
This section combines monthly December readings with fourth-quarter comparisons, so it is important to distinguish between month-to-month and year-over-year timeframes. Keeping those periods clearly separated helps readers interpret the figures consistently when moving between December data points and fourth-quarter comparisons.
Because this discussion places December data alongside fourth-quarter comparisons and a 2014 outlook, readers may notice that multiple reporting periods are referenced close together. Clear labeling of each period helps avoid confusion when monthly figures, quarterly comparisons, and forward-looking commentary appear in the same section.
FHFA 10th consecutive quarter claim
Statements about prices being higher for a 10th consecutive quarter should be read with attention to the specific comparison period being used. Consecutive-quarter claims depend on a clearly defined sequence of quarterly measurements, so readers benefit from having that timeframe stated explicitly.
The Federal Housing Finance Administration reported similar trends in December home price data for properties either financed or owned by Fannie Mae or Freddie Mac.
Home prices rose by a seasonally adjusted rate of 0.1 percent in December as compared to November’s reading. Home prices were 1.80 percent higher between the fourth quarter of 2024 and the fourth quarter of 2025. Adjusted for inflation, this reading indicates an approximate year-over-year increase of 7 percent.
FHFA reported that house prices rose in 41 states between the fourth quarter of 2024 and the fourth quarter of 2025.
In order of home price appreciation, the top five states with highest annual growth in home prices between the fourth quarter of 2024 and the fourth quarter of 2025 were North Dakota (6.4 percent), Delaware (6.3 percent), Illinois (6.1 percent), Wisconsin (5.7 percent) and Michigan (5.5 percent). These calculations were seasonally adjusted and based on home purchases only.
They showed that home price growth was still positive but losing momentum compared with November.
The seasonally adjusted month-to-month increase was 0.4 percent in December, the same as in November.
Home prices were up 1.3 percent year over year in December, down from 1.4 percent in November.
A slower pace of price increases may help more buyers enter the market and may encourage more owners to list their homes for sale.
No. Average home prices remained about 20 percent below their 2006 pre-recession peak.
Dallas, Texas and Denver, Colorado were highlighted for recently setting records for rising home prices.
Regional differences in economic recovery, foreclosures, slow job growth, poor winter weather, and tight mortgage lending standards could weigh on the housing market.
The FHFA report also showed rising home prices with slower momentum in December.
FHFA said home prices were higher for the 10th consecutive quarter and rose in 41 states.
North Dakota, Delaware, Illinois, Wisconsin, and Michigan had the highest annual home price appreciation in the FHFA report.
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