Average U.S. home prices rose 7.73% over the 12 months to Sep. 30, but the quarter-to-quarter gain was the lowest since 1998 and indicates a sharp deceleration in house price gains, the U.S. Office of Federal Housing Enterprise Oversight.
Home prices rose 0.86 percent from the second to third quarter, an annualized rate of 3.45 percent and the lowest quarterly increase since the second quarter of 1998, OFHEO said.
The data "provide more evidence that the long-forecasted national deceleration in house prices is occurring," said James Lockhart, the OFHEO director.
