By Vicki Needham - 06/03/14 10:06 AM EDT
Home prices rose at their slowest yearly pace since February 2013 as the slow down in homes sales holds back larger gains.
CoreLogic said Tuesday that prices are 10.5 percent higher than a year ago while April’s prices were 2.1 percent higher than March levels, including distressed sales.
"The weakness in home sales that began a few months ago is clearly signaling a slowdown in price appreciation," said Sam Khater, deputy chief economist for CoreLogic.
"The 10.5 percent increase in April, compared to a year earlier, was the slowest rate of appreciation in 14 months."
Excluding distressed sales, home prices increased by 8.3 percent year over year in April.
Home prices nationwide remain 14.3 percent below their peak, which was set in April 2006.
"Home prices are continuing to rise as we head into the summer months," said Anand Nallathambi, president and CEO of CoreLogic.
"The purchase market continues to suffer from a dearth of inventory which we expect will continue to drive prices up over the year."
Including distressed sales, the five states with the highest home price appreciation were: California (+15.6 percent), Nevada (+14.8 percent), Hawaii (+14.1 percent), Oregon (+11.8 percent) and Michigan (+11.3 percent).
Home prices are expected to increase 1 percent from April to May and by 6.3 percent over the next year.