Home prices, including distressed sales, took a leap forward and increased 8.8% in May 2014 from a year ago, according to the latest home price index from CoreLogic.
This marks 27 weeks of straight year-over-year increases in home prices nationally.
On a monthly basis, home prices grew 1.4% in May compared to April.
“The pace of home price appreciation is cooling off quickly as the weather warms up,” said Mark Fleming, chief economist for CoreLogic.
“May's 8.8% year-over-year growth rate is down almost three percentage points from just three months ago. The influences of modestly rising inventory and less-than-expected demand are causing price growth to moderate toward our forecasted expectations," Fleming continued.
Excluding distressed sales, home prices jumped 8.1% in May compared to last year and 1.2% month over month compared to April.
In addition, at the state level, no states recorded depreciation in May, and 25 states and the District of Columbia were at or within 10% of their peak home price appreciation.
“Home prices are continuing to climb across most of the country which has both positive and negative implications for the housing market,” said Anand Nallathambi, president and CEO of CoreLogic.
“While the rapid rise in prices over the past two years has lifted many homeowners out of negative equity, it has also become a negative factor in buying decisions for prospective purchasers weighing affordability concerns. As we move ahead, a moderation in home price increases over the next twelve months should help cool things down a bit and keep the housing recovery going,” he added.