Home prices rose 4.9% year-over-year in December according to the FNC Residential Price Index. While economic growth slowed unexpectedly, the housing recovery maintained its momentum with steady home price gains. Contributing factors included a stabilizing foreclosure market with foreclosures dropping from 24% to 17.8% of total home sales year-over-year. Half of the major markets tracked saw rising prices in December led by Phoenix at 23% growth, while Chicago saw just 1% growth, underperforming other large cities.