WASHINGTON (AP) — 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 said Tuesday that prices increased 0.2 percent in October from September. That's up from a 0.1 percent gain in September. But it is down sharply from a 0.9 percent increase in August.
One reason for the slowdown is that the figures aren't adjusted for seasonal patterns. Prices usually decline in the fall and winter, when sales slow.
Still, big gains in previous months, along with higher mortgage rates, may be pricing some buyers out of the market.
Home prices have risen 12.5 percent from a year ago. The increase could encourage more sellers to put their homes on the market, easing a shortage of homes for sale.
Only 1.88 million homes were for sale at the end of October, down 2.1 percent from the previous month and the fewest since March.
The shortage of inventory has slowed sales. Home re-sales fell in October for a second straight month to a seasonally adjusted annual pace of 5.12 million, the lowest since June, according to the National Association of Realtors. That pace is still 6 percent higher than it was a year earlier. But it's below the roughly 5.5 million sold each year in healthier markets.