The home price growth in the U.S. decelerated in June marking the slowest pace on a year-over-year basis, according to the latest housing data released by the S&P/Case-Shiller.
The S&P/Case-Shiller housing index, a measure that gauges home prices in major U.S. cities, went down 0.1 percent in June on a seasonally adjusted basis. The 10-city index fell 0.1 percent, while the 20-city index declined 0.2 percent.
Prices in 20 of the major U.S. cities rose 8.1 percent. It was 9.4 percent when compared to a year earlier.
"Home price gains continue to ease as they have since last fall," David Blitzer, chairman of the index committee at S&P Dow Jones Indices, said in a statement, according to Reuters.
"For the first time since February 2008, all cities showed lower annual rates than the previous month. Other housing indicators - starts, existing home sales and builders' sentiment - are positive. Taken together, these point to a more normal housing sector."
The S&P report also points out that home prices are now at the same level they were in 2005. Economists predict growth to decelerate further in the coming months and say this is a good sign for the housing sector.
"A more gradual pace of home price appreciation should continue to lift more homeowners out of negative equity, albeit at a slightly slower pace," Gennadiy Goldberg, U.S. strategist at TD Securities, wrote in a research note, according to MarketWatch.
The housing market recovery has been choppy. Though builder sentiment is up, homes are affordable, mortgage rates are down and supply has been increasing - lending standards are still tough. Banks and other financial institutions aren't ready to take the risk of another great fall yet.
In fact, some real estate experts believe that the real recovery hasn't even started yet.
Keith Jurow, author of the Capital Preservation Real Estate Report, explains in his research that though more homes came up for sale on the market in the spring, home prices haven't gone up accordingly and sales haven't been that impressive either.
"Many people waited for prices to rise before putting their house on the market, and they have," Jurow was quoted by MarketWatch. "But now listings are increasing because everyone has the same idea. Unfortunately, May and June are traditionally the strongest months for sales, and these home sellers have missed the peak season."
