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Home Prices on Path to Stabilization This Year

After coming to a ""turning point"" last year, the housing market is now stabilizing, according to ""Clear Capital's"":http://www.clearcapital.com/ monthly ""Home Data Index,"":http://www.clearcapital.com/company/MarketReport.cfm?month=May&year=2013. This year, Clear Capital expects price gains to slow.

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""2013's forecasted trajectory is one of moderation and stabilization,"" according to Clear Capital.

Home prices rose 7.2 percent on an annual basis in April. Last April's annual price change was a decline of 1.4 percent year-over-year.

However, ""market observers shouldn't be fooled by the large headline numbers,"" said Alex Villacorta, director of research and analytics at Clear Capital.

""Last year was a turning point for the market where the year started with prices at virtually their lowest point and saw a very strong correction through the year,"" Villacorta said.

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This year, price gains will slow down, but ""we are still confident in the sustainability of the recovery as the market continues to adjust to the new normal,"" Villacorta added.

The highest-performing markets in April are some of the markets hardest-hit by the housing crisis.

Las Vegas ranked No. 1 with a 4.2 percent quarterly gain and a 24.3 percent year-over-year gain in April.

Sacramento, California, ranked second with a 3.7 percent quarterly rise in prices and a 20.3 percent yearly increase.

Phoenix, another hard-hit market on the rebound, posted a 3.1 percent quarterly gain and 25.8 percent.

At the other end of the spectrum, Birmingham, Alabama, experienced the greatest quarterly price decline--3 percent--but a 5.3 percent increase year-over-year in April.

Detroit also experienced a quarterly decline with a strong year-over-year increase in April. Prices declined 2.5 percent on a quarterly basis, and rose 6.7 percent on a yearly basis in April.

Cleveland experienced a 2.1 percent quarterly and yearly decline.

According to Clear Capital, these markets are struggling as high levels of distressed home sales continue to weigh down prices.

Moving forward, national price growth will come back in line with historic averages, according to Clear Capital.

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