Miami reported one of the highest gains in home prices, according to S&P Case-Schiller’s Home Prices Indices for January 2015.
The city reported the second highest year-over-year gains of 8.3 percent over the last 12 months. Denver led the country with 8.4 percent, according to the report.
Miami was also among cities that reported month-over-month increases. Charlotte, Miami and San Diego led with increases of 0.7 percent.
“Unusually cold and wet weather may have weakened activity in some cities,” the report stated.
“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,” David Blitzer, managing director and chairman of the Index Committee for S&P Dow Jones Indices, said in the press release. “Moreover, the new home sector is weak; residential construction is still below its pre-crisis peak. Any time before 2008 that housing starts were as low as the current rate of one million, the economy was in a recession.”