WASHINGTON — The U.S. housing market continued to cool off in September, as home prices rose at an ever slowing pace.
Prices increased 5.6 percent in September compared to a year ago, real estate data provider CoreLogic says. That's down from annual gains of 6.4 percent in August and 6.8 percent in July.
Home prices had been climbing by as much as 12 percent annually toward the end of last year. But the acceleration out of the housing crash that triggered the Great Recession nearly seven years ago has become unsustainable. Wages have barely budged and lending standards remain relatively strict. This makes it difficult for families to pay the higher home prices.
CoreLogic forecasts that the slowdown will continue, with annual home price growth slipping below 5 percent by September 2015.