Home price gains moderated across most of the nation in the second quarter as appreciation reached its slowest pace since 2012.
The median price fell from a year earlier in 47 of 173 metropolitan areas measured, the National Association of Realtors said in a report Tuesday. Eleven percent of areas had double-digit increases, compared with 37 in the previous quarter.
Home-price appreciation is moderating as more listings come on the market and buyer demand slows. The inventory of previously owned homes for sale rose 6.5 percent in June from a year earlier to 2.3 million, according to the Realtors group. That’s up from a 13-year low of 1.8 million in January 2013.
“We’re entering this next phase of recovery where we shift down a gear to a more sustainable pace,” Paul Diggle, U.S. property economist for Capital Economics Ltd. in London, said in a phone interview before the data were released. “It’s not something to worry about — it’s something to be welcomed. It means price gains are at a more sustainable footing that is more in line with income growth.”
The median price for an existing single-family house in the three months through June was $212,400, up 4.4 percent from the second quarter of 2013. The median price during the first quarter rose 8.3 percent from a year earlier.