U.S. home prices rise at slowest rate in 20 months

IRVINE, Calif., Aug. 5 (UPI) -- U.S. home prices rose just 1 percent in June, marking the slowest year-over-year rise in 20 months, largely due to more houses on the market and modest sales.

Prices rose in June at the slowest rate in four months, according to information released by data provider CoreLogic. Prices in June increased 7.5 percent from 12 months earlier, as compared to the solid 8.3 percent gain posted in May and the high of 11.9 percent in February.

"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," said Mark Fleming, chief economist at CoreLogic.

Prices had risen sharply last year, along with high mortgage rates. This led to many sellers putting their houses on the market, bringing down the prices. At the same time an expensive market curbed some of the demand, which in turn reduced price pressures on the market.

Home prices are still below housing bubble peak levels, but gains made in June were enough to push prices to record highs in 12 states: Alaska, Colorado, Iowa, Louisiana, Nebraska, North Dakota, Oklahoma, South Dakota, Tennessee, Texas, Vermont and Wyoming.