US home prices decline in January for 3rd straight month as weather, low supply slow sales

This Friday, March 21, 2014 photo shows a home for sale in Shaker Heights, Ohio. Standard & Poor's releases S&P/Case-Shiller index of home prices for January, on Tuesday, March 25, 2014. (AP Photo/Tony Dejak) (The Associated Press)

WASHINGTON – U.S. home prices dipped in January for the third straight month as cold weather, a limited supply of homes and higher mortgage rates lowered sales.

The Standard & Poor's/Case-Shiller 20-city home price index declined 0.1 percent from December to January, the same decline as the previous two months. The index is not adjusted for seasonal variations, so the dip partly reflects weaker sales in the winter.

The index rose a healthy 13.2 percent in January compared with 12 months earlier. But that is down from a 13.4 percent increase in 2013.

Housing weakened this winter after recovering steadily for two years. Home sales and construction have declined after strong gains last year. Most economists expect the housing recovery will resume in the spring, but at a slower pace.