Los Angeles-area home prices in May posted their smallest gain in more than a year, mirroring a slowdown nationally, a closely watched report said.
The housing market began to slow last summer amid higher prices and mortgage rates, and many buyers decided to put their home search on hold just as more homes have come up for sale, helping to temper price appreciation.
The slowdown was also seen nationally. Across the nation's 20 largest cities, prices rose 9.3% in May — the smallest gain since February 2013.
Many economists, however, don't expect prices to decline. Rather, they say, the market is normalizing after unsustainable gains in the first half of last year.
Price increases will likely slow further this year, reaching a mid-single-digit level, said
All cities tracked by the index — except
The Case-Shiller index, created by economists Karl E. Case and Robert J. Shiller, is widely considered the most reliable read on home values. The housing index compares the latest sales of detached houses with previous sales and accounts for factors such as remodeling.