Home prices continued their annual gains in August but have a appreciated at a slower pace since hitting a peak a year ago.
CoreLogic, which tracks data on the housing market, said on Tuesday that prices rose 6.4 percent in August compared with the same month a year ago, representing 30 months of year-over-year increases.
{mosads}”The pace of year-over-year appreciation continues to slow down as real estate markets find more balance,” said Mark Fleming, chief economist at CoreLogic.
Home prices hit a high of 12 percent year-over-year in October 2013 and has been dropping since then.
“Continued moderation of home price appreciation is a welcomed sign of more balanced real estate markets and less pressure on affordability for potential home buyers in the near future,” Fleming said.
Prices were up 0.3 percent in August over July.
At the state level, including distressed sales, all states showed year-over-year home price appreciation in August.
Prices reached new highs in nine states — Alaska, Colorado, Iowa, Louisiana, Nebraska, North Dakota, Oklahoma, Texas and Wyoming — plus the District of Columbia.
Excluding distressed sales, home prices nationally increased 5.9 percent in August compared with the same month a year ago and 0.3 percent on a monthly basis.
Also, taking out distressed sales, 49 states and the District of Columbia showed year-over-year home price appreciation in August, with Mississippi being the only state to experience a decline (-1.7 percent).
CoreLogic’s forecast shows that home prices, including distressed sales, will increase 0.2 percent from August to September and by 5.2 percent from August to August 2015.
“Home prices continue to rise, albeit more slowly, across most of the U.S.,” said Anand Nallathambi, president and CEO of CoreLogic.
“Major metropolitan areas such as Riverside and Los Angeles, California, and Houston continue to lead the way with strong price gains buoyed by tight supplies and a gradual rebound in economic activity.”