Home prices continued to rise in January, despite slowing growth and some seasonal weakness, a closely watched index showed on Tuesday.
The S&P/Case-Shiller Index showed residential real estate values increased 4.6 percent year-over-year in 20 cities, up slightly from the pace in December. Denver and Miami led the gains over the last 12 months, with homes appreciating 8.4 and 8.3 percent, respectively.
However, both the 10- and 20-city home price indices were essentially flat month-to-month. San Francisco, where home prices fell nearly 1 percent between December and January, was the biggest laggard.
In a statement, S&P Dow Jones Industry attributed some of the weakness to "unusually cold and wet weather."
"Despite price gains, the housing market faces some difficulties. Home prices are rising roughly twice as fast as wages, putting pressure on potential homebuyers and heightening the risk that any uptick in interest rates could be a major setback," said David M. Blitzer, managing director and chairman of the Index Committee for S&P Dow Jones Indices.