NEW YORK (TheStreet) --U.S. home price growth for August was up by 5.3% year over year, according to the S&P CoreLogic Case-Shiller Indices, which covers the entire country. The data was released earlier Tuesday morning. A decline in inventory helped to drive prices higher.

Co-founder of the home price index, and Yale University professor of economics and finance Robert Shiller, joined this morning's "Bloomberg Daybreak: Americas" to discuss the data. BloombergTV's Jonathan Ferro questioned Shiller on if the U.S. is seeing steady gains, "nothing to fear, just steady as she goes," he said.

"Well if it keeps going up at 5% a year that will accumulate to a substantial increase, but we're not there yet," Shiller responded. "Seasonally adjusted it's not going up very fast. So there's some hints of slowdown in the latest numbers, notably the cities that were going up really dramatically month over month have kind of fallen back into the pack."

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Shiller pointed to Portland, Denver, or Chicago, noting that pricing is "not super strong" but is still rising.

Ferro then asked Shiller to explain what is "driving the rollover in some of those cities."

"The rapidly growing price cities have seen more housing starts and so yes, that's what happened. That's how a capitalist system functions well," Shiller said. "Employment flows into some cities, like Portland for example has been drawing labor, they come and they bid up home prices and then it becomes more attractive for builders to start building more."

BloombergTV's Alix Steel joined the conversation and asked Shiller about the 9% decline in September housing starts and if he writes that off as a one off, or if it is a move to something more serious.

"That's the big question. As I said we see some signs of weakness that there's no city that's going up at a double digit annual rate. Among all of our cities it used to be that there were these high flyers," Shiller said. He added that he doesn't want to make too much of one month's data but again stated that it shows some weakness.