Home prices post first double-digit gain since housing boom

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Home prices in the first quarter of 2013 posted their first double-digit yearly gain since the peak of the housing boom seven years ago, but price appreciation should decelerate in 2014 as supply increases, mortgage rates rise and home affordability declines, CoreLogic reported.

Home prices jumped by 10.2 percent in the first quarter of 2013 compared to the first quarter of 2012, but growth should slow to 6.5 percent between the first quarter of 2013 and the first quarter of 2014, according to the CoreLogic Case-Shiller Indexes.

“Although double-digit gains usually indicate unsustainable appreciation and, possibly, bubbles in some metro areas, there is less need for concern now since home prices remain 26 percent below their peak nationally and are even lower in many metro markets,” said David Stiff, chief economist at CoreLogic Case-Shiller, in a statement.