Home prices gain for seventh month

MIAMI - U.S. home prices edged up in December, the seventh straight monthly gain and another sign the housing market continues its bumpy recovery, according to data released Tuesday.

The Standard & Poor's/Case-Shiller 20-city home price index rose 0.3 percent from November to December, to a seasonally adjusted reading of 145.87. The index was off about 3 percent from December 2008, nearly matching analysts' estimates.

Home sales data for January, due out later this week, are also expected to show gains over year-end levels as buyers took advantage of low interest rates and temporary tax credits.

Prices aren't anywhere near the zenith of the housing boom - they are down 30 percent from the peak in May 2006 - and there are worries that the recovery may not last. But prices have been steadily increasing from month to month, climbing almost 4 percent off the bottom in May.

The gradual improvement is important to the nation's economic recovery. For most Americans, their home is their largest asset, so as values climb homeowners feel wealthier and more comfortable spending.

And for homeowners who currently owe more on their mortgages than their properties are worth, rising prices will rebuild equity.

Only five of 20 cities in the index showed declines from November to December. Los Angeles and Phoenix posted the largest price increases. Prices dipped in key markets such as Miami, New York and Chicago.

- AP