A limited number of properties for sale against a backdrop ofsteady demand helped keep home prices elevated in January,according to S&P CoreLogic Case-Shiller data releasedTuesday.

Highlights of Home Prices (January)
20-city home-price index increased 6.4% y/y (est. 6.2%), afterrising 6.3% y/y National gauge of home prices rose 6.2% y/ySeasonally adjusted 20-city index advanced 0.8% m/m (est.0.6%).
Home prices continue to post solid gains across the country, withthe largest advances occurring in the West. While demand is beingspurred by robust job growth, inventory remains lean and isallowing sellers to raise asking prices. The number of previouslyowned houses on the market during the month was the lowest for anyJanuary in National Association of Realtors' records back to1999.

Higher property prices and mortgage rates near a four-year high,however, are putting a dent in affordability. New-home sales havedeclined for three straight months, according to government datareleased Friday, while first-time buyers of previously owned housesmade up a smaller share of total purchases in February.

Economist Views
“The home price surge continues,” David Blitzer, chairman of theS&P index committee, said in a statement. “Two factorssupporting price increases are the low inventory of homes for saleand the low vacancy rate among owner-occupied housing.”

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