Home prices continue rebound as sales slow

{mosads}Phoenix led the way over the last 12 months, as home values gained 23.2 percent. Atlanta, Detroit, Las Vegas, Los Angeles, Miami, Minneapolis and San Francisco also posted double-digit gains.

However, those gains were more muted in just the last month, as only nine of the 20 cities tracked posted gains from December to January. Eight cities saw home prices slide heading into 2013, while the rest remained flat.

As home prices climb, the Commerce Department reported that new home sales in February were at a seasonally adjusted annual rate of 411,000 — 4.6 percent lower than they were in January. However, the decline came after an unusually strong January number, which found home sales surging 15.6 percent, and economists believe the underlying trend of home sales remains solid. The two months combined still mark the strongest two-month stretch for home sales since 208.

But sales are still running behind the 700,000 annual level that is considered healthy.

The median sales price of new houses sold was $246,800, and there were 152,000 new homes available for purchase at the end of February. At the current sales pace, housing inventory would sell out in 4.4 months, as housing supply remains among its lowest levels in years.