From the WSJ:
Home prices continued to rise modestly in February, according to a report released on Tuesday, a continued upward push in home values which underscores concerns that buyers’ incomes aren’t keeping pace.
The S&P/Case-Shiller Home Price Index, covering the entire nation, rose 4.2% in the 12 months ended in February, weaker than a 4.4% increase in January.
The housing market has been gaining strength in recent months, but some economists fear the improvement is fragile because wages haven’t kept pace with price increases.
“Home prices continue to rise and outpace both inflation and wage gains,” said David Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices.
Still, Mr. Blitzer cautioned that only two markets—Denver and Dallas—have surpassed their prerecession housing boom peaks. “If a complete recovery means new highs all around, we’re not there yet,” he said.
Both the 10-city and 20-city indexes saw larger year-over-year increases in February than in January. The 10-city index gained 4.8% from a year earlier, up from 4.3% in January. The 20-city index gained 5% year-over-year, compared with a 4.5% increase in January.
Economists surveyed by The Wall Street Journal expected a 4.8% increase in the 20-city index.