Home prices recorded 26 months of consecutive year-over-year increases nationally on Tuesday. However, despite the continues climb, the pace of appreciation is finally starting to slow, according to the latest home price index from CoreLogic (CLGX).
“CoreLogic house price data for April show that the annual pace of house price gains moderated for the second consecutive month,” Ed Stansfield, chief property economist with Capital Economics said.
“While the process still has some way to go, the data adds to the evidence that looser supply conditions are starting to deliver the slowdown in house price growth we have been anticipating,” he added.
Stansfield explained that the overall strength of house price gains owes much to the sale of distressed homes.
If distressed sales are taken out of the picture, CoreLogic said the average price rose by a more moderate 8.3% over the past year.
Although, it is still too soon to be certain if this dip marks the start of a downward trend in house price inflation, Stansfield added.
But for a closer look, this chart shows annual home price appreciation over the last six months ending in April 2014.
(source CoreLogic: click for larger image)
For an in-depth look at each individual month, click the following: