Home Price Gains Get Smaller, More Widespread

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Home prices are increasing at a slower rate than before but they’re also rising in more metropolitan areas than at any time since the housing recovery began. In fact, according to Trulia’s most recent Price Monitor, home prices rose in 97 of 100 metros compared with last June. But, though the increases are more widespread than before, they aren’t as large as they were last year or even last quarter. Nationally, home values are up 8.1 percent year-over-year. In June 2013, home prices were up 9.5 percent from the year before. Quarterly results also show the rate of increase falling, with gains dropping from 3.1 percent to 2.6 percent in the most recent report. Smaller increases across more metropolitan areas indicate home prices are normalizing, as areas hit hard by the foreclosure crisis are leveling and increases are beginning to spread into new areas. As evidence, Western cities are no longer dominating the list of top 10 biggest price gains among metro areas. Cities in the South and Midwest now claim eight of the top ten spots, while Western metros – which were posting more than 20 percent year-over-year increases in 2013 – have now fallen from the list. More here.