Real estate data provider CoreLogic said on Tuesday prices rose 7. 4 per cent in July from July 2013.
That was slightly below June's year-over-year increase of 7. 5 per cent and far below a recent peak of 11. 9 per cent in February. Prices rose 1. 2 per cent in July from June.
Home construction jumped 15. 7 per cent in July to an eight-month high as developers broke ground on more single-family homes and apartment buildings.
And the number of available homes rose 3. 5 per cent in July to the most in nearly two years.
Home prices rose in 49 states in July from the previous year but fell in Arkansas, CoreLogic said.
Sales of existing homes rose for a fourth straight month in July to their strongest pace in nine months.
Housing helped boost the economy in the April-June quarter, when growth reached an annual rate of 4. 2 per cent.
US home prices rose in July but at a slower rate compared with earlier this year.
Read more here: Business Spectator