US home prices increase 0.2 per cent October, sign that price gains have slowed

Christopher S. Rugaber, The Associated Press 0

WASHINGTON – A measure of U.S. home prices rose only modestly in October, adding to signs that prices have stabilized after big gains earlier this year.

Real estate data provider CoreLogic says prices increased 0.2 per cent in October from September. That’s up from a 0.1 per cent gain in September but down from a 0.9 per cent increase in August.

One reason for the slowdown: the figures aren’t adjusted for seasonal patterns. Prices usually decline in the fall and winter, when sales slow.

Still, large gains in previous months, along with higher mortgage rates, may be pricing some buyers out of the market.

Home prices have risen 12.5 per cent from a year ago. The increase could encourage more sellers to put their homes on the market, easing a shortage of homes for sale.

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