U.S. single-family home prices rose in January, starting the year with the biggest annual increase in six-and-a-half years in a fresh sign the housing market recovery remains on track, a closely watched survey showed on Tuesday.
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The S&P/Case Shiller composite index of 20 metropolitan areas gained 1% month-on-month in January on a seasonally adjusted basis, topping expectations for 0.9%. Prices have been gaining since last February.
On a non-seasonally adjusted basis, prices rose 0.1%.
Prices in the 20 cities climbed 8.1% year-over-year, also beating expectations for 7.9%. It was the biggest yearly increase since June 2006, when housing prices were on their way down as the market was starting to collapse.