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NEW YORK (
TheStreet) -- Home prices continued to log double-digit gains in July, though prices are expected to moderate in the second half of the year.
According to the July CoreLogic Home Price Index, prices rose 12.4% in July on a year-over-year basis and 1.8% month-over-month.
Excluding the impact of distressed sales, home prices rose 11.4% in July year over year and 1.7% from June. Distressed sales include foreclosures and short sales which typically sell at a discount to market price. The share of distressed sales has been falling, so including them in the index tends to exaggerate the pace of appreciation.
The CoreLogic Pending HPI, which indicates future prices, suggested that prices might rise a further 12.3% year over year in August. Month over month, though, price gains would moderate to about 0.4%. Excluding distressed sales, home prices are expected to climb 12.2% year over year and 1.2% month over month in August.
"Home prices continued to surge in July," said Mark Fleming, chief economist for CoreLogic. "Looking ahead to the second half of the year, price growth is expected to slow as seasonal demand wanes and higher mortgage rates have a marginal impact on home purchase demand."
Excluding distressed sales, the five states with the highest home price appreciation were: Nevada (+24.2%), California (+20.2%), Arizona )+14.9%), Utah (+13.5%) and Florida (+13.5%).
Nationally, home prices are now within 18% from their April 2006 peak.
-- Written by Shanthi Bharatwaj in New York.