S&P reported on Tuesday its Case-Shiller Home Price Index, which tracks home prices in 20 U.S. metropolitan areas, rose 3.0 percent y-o-y in February, following a revised 3.5 percent y-o-y increase in January (originally a 3.6 percent y-o-y gain). That was the smallest annual advance in house prices since September 2012.

Economists had expected an advance of 3.2 percent y-o-y.

Las Vegas (+9.7 percent y-o-y), Phoenix (+6.7 percent y-o-y) and Tampa (+5.4 percent y-o-y) recorded the highest y-o-y gains in February.

Meanwhile, the S&P/Case-Shiller U.S. National Home Price Index, which measures all nine U.S. census divisions, was up 4.0 percent y-o-y in February, down from 4.2 percent y-o-y in the previous month.

David Blitzer, chairman of the index committee at S&P Dow Jones Indices, noted, “The pace of increases for home prices continues to slow. Homes began their climb in 2012 and accelerated until late 2013 when annual increases reached double digits. Subsequently, increases slowed until now when the National Index is up 4% in the last 12 months. Sales of existing single-family homes have recovered since 2010 and reached their peak one year ago in February 2018. Home sales drifted down over the last year except for a one-month pop in February 2019. Sales of new homes, housing starts, and residential investment had similar weak trajectories over the last year. Mortgage rates are down one-half to three-quarters of a percentage point since late 2018.”