WASHINGTON - U.S. home prices rose in June by the smallest year-over-year amount in 20 months, slowed by modest sales and more properties coming on the market.
Data provider CoreLogic says prices rose 7.5 percent in June compared with 12 months earlier. That's a solid gain but less than the 8.3 percent year-over-year increase in May and a recent year-to-year peak of 11.9 percent in February.
On a month-to-month basis, June prices rose just 1 percent, down from 1.4 percent in May. But CoreLogic's monthly figures aren't adjusted for seasonal patterns, such as warmer spring weather.
The slowing price gains should make buying a house more affordable.
"Home price appreciation continued moderating in June with its slight month-over-month increase," said Mark Fleming, CoreLogic's chief economist. "This reversion to normality that we are finally experiencing is expected to continue across the country and should further alleviate concern over diminishing affordability and the risk of another asset bubble."
Prices had risen sharply last year, along with mortgage rates. Many would-be buyers, particularly younger ones, were priced out of the market as a result.