Home price gains 3.6% higher compared to a year ago, but slow to a 6.5-year low

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March 26, 2019 1:06pm NYSE:XHB

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From Andrea Riquier: The numbers: The S&P CoreLogic Case-Shiller 20-city index rose a seasonally adjusted 0.1% increase in January compared to December. Price gains were 3.6% higher compared to a year ago, but that was the slowest pace of annual growth since 2012.

What happened: The broader national Case-Shiller index rose 4.3% for the three months ending in January. Economists surveyed by Econoday had forecast a 4.2% yearly increase for the closely-watched 20-city index.

Big picture: The housing market has hit an inflection point. After years of runaway price growth, home values are braking hard. More cities saw a monthly decline in January than saw gains.

Amid the slowdown in expensive West Coast cities — San Diego and San Francisco were among the slowest annual price gainers in January — a new contender cracked the top 3. Price growth in Minneapolis, when taken to the third decimal place, was just higher than Charlotte — and Minneapolis was among the metros that experienced a monthly decline.

Metro area Monthly change 12-Month change
Atlanta -0.3% 4.9%
Boston -0.4% 4.6%
Charlotte 0.3% 5.1%
Chicago -0.5% 2.4%
Cleveland -0.6% 3.8%
Dallas 0.1% 3.8%
Denver 0.2% 5.0%
Detroit -0.1% 5.0%
Las Vegas -0.3% 10.5%
Los Angeles -0.3% 2.9%
Miami 0.3% 4.8%
Minneapolis -0.4% 5.1%
New York 0.0% 3.0%
Phoenix -0.1% 7.5%
Portland -0.2% 3.3%
San Diego -0.2% 1.3%
San Francisco -1.3% 1.8%
Seattle -0.3% 4.1%
Tampa 0.3% 5.1%
Washington -0.1% 3.1%

Market reaction: Shares of large publicly-traded home builder companies have skyrocketed in 2019 as lower mortgage rates bolster buyer demand. LGI Homes, Inc. LGIH, -0.85%   shares have gained more than 30%, and KB Home’sKBH, -1.26%   stock is up 23%.

The SPDR S&P Homebuilders ETF (XHB) was trading at $37.96 per share on Tuesday afternoon, down $0.21 (-0.55%). Year-to-date, XHB has declined -14.06%, versus a 5.58% rise in the benchmark S&P 500 index during the same period.

XHB currently has an ETF Daily News SMART Grade of C (Neutral), and is ranked #32 of 42 ETFs in the Consumer-Focused ETFs category.

This article is brought to you courtesy of MarketWatch.

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