Home price appreciation is slowing down as the weather warms up, according to Core Logic's Home Price Index Report (see a PDF here).
In May, year-over-year home prices increased 8.8 percent. That figure is down 3 percentage points from three months ago, said Mark Fleming, CoreLogic chief economist, in the report.
With the housing market in recovery, this cooldown is positive, CoreLogic CEO Anand Nallathambi said in the report.
"While the rapid rise in prices over the past two years has lifted many homeowners out of negative equity, it has also become a negative factor in buying decisions for prospective purchasers weighing affordability concerns," he said. "As we move ahead, a moderation in home price increases over the next twelve months should help cool things down a bit and keep the housing recovery going."
Month-over-month home prices increased by 1.4 percent in May compared with data from April.
Home prices are predicted to increase 0.8 percent month-over-month from May to June.
