U.S. home prices rose 5.5% in August compared with the same month a year ago, according to data from CoreLogic released Tuesday in the research firm’s Home Price Insights monthly report. The data include sales of distressed properties.

The August index increase represents the slowest year-over-year growth in home prices since October 2016.

Month over month, August prices rose 0.1%, including distressed home sales. CoreLogic expects housing prices to rise by 4.7% year over year by August 2019 and to drop by 0.4% month over month in September 2018.

Home prices rose 6.2% year over year and 0.3% month over month in July. The August totals continue the drop in the index that began last month.

Since the housing market bottomed out in March 2011, the CoreLogic index has risen by 57%. As of July, home prices are now 5.1% higher than they were at the April 2006 pre-crash peak. Adjusted for inflation, however, home prices are 13.5% below the April 2006 peak.

CEO Frank Martell noted:

In some markets, homebuyers and sellers are remaining cautious and taking a pause as price appreciation continues to rise. By waiting to sell, homeowners believe they will get the greatest return on their investment; the more money they have for a down payment, the easier the purchase payments will be for their next home.

Chief economist Frank Nothaft added:

The rise in mortgage rates this summer to their highest level in seven years has made it more difficult for potential buyers to afford a home. The slackening in demand is reflected in the slowing of national appreciation, as illustrated in the CoreLogic Home Price Index. National appreciation in August was the slowest in nearly two years, and we expect appreciation to slow further in the coming year.

Including distressed sales, home prices rose the most year over year in Nevada (13.0%), Idaho (12.2%) and Washington (9.2%).

Through August, 38% of the top 100 metropolitan areas were overvalued, 18% were undervalued and 44% were at value. When looking at only the top 50 markets based on housing stock, 46% were overvalued, 12% were undervalued and 42% were at value. CoreLogic defines an overvalued housing market as one in which home prices are at least 10% higher than the long-term, sustainable level, while an undervalued housing market is one in which home prices are at least 10% below the sustainable level.

Among U.S. metro areas, Las Vegas has posted the largest year-over-year index gain, up 13.7%. Seattle was up 9.8%, while Denver and Los Angeles were up 7.4% and San Diego was up 6.0%, to round out the top five.

See CoreLogic’s full August report.

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