Home price growth sinks to lowest level since 2012

The slowdown marks the 13th consecutive month where price growth has dipped

Mortgage rates are falling (Credit: iStock)
Mortgage rates are falling (Credit: iStock)

The housing market continued to show signs of a major slowdown, and through April, it had recorded 13 consecutive months of slowing home-price gains.

Property values in 20 major U.S. cities increased 2.5 percent from a year ago, according to data from S&P CoreLogic Case-Shiller, Bloomberg reported. That’s down from 2.6 percent in March, and reflects the slowest pace since 2012.

Most cities showed year-over-year gains, however. In Las Vegas, for example, home prices grew at 7.1 percent. Nationally, home price growth decelerated at 3.5 percent.

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The slowdown was most pronounced in wealthy California cities such as Los Angeles, San Francisco and San Diego. There, gains circled below 2 percent.

The news comes at a time when mortgage rates are dropping and inventory is piling up. It’s not all bad news though: home sales in May topped estimates. A report from the National Association of Realtors revealed about 5.34 million contracts closed last month, reflecting a three-month high.

Prices in 14 out of the 20 cities remained largely unchanged in April. Only two cities, Washington D.C. and Seattle, saw prices drop. [Bloomberg]Natalie Hoberman