Home prices fell 0.15% month-over-month in August, according to the latest S&P/Case-Shiller home price index.

On a year-over-year basis, home prices rose 5.6%, just below expectations for an increase of 5.7%. 

Expectations were for the report to show home prices rose 0.18% month-over-month in August, while rising 5.7% year-over-year. 

Last month’s report showed that prices actually fell month-over-month while rising less than expected on a year-over-year basis.

Following Tuesday’s report, David Blitzer, chairman of the index committee at S&P Dow Jones Indices said, “The deceleration in home prices continues. The Sun Belt region reported its worst annual returns since 2012, led by weakness in all three California cities — Los Angeles, San Francisco and San Diego. Despite weaker year-over-year numbers, home prices are still showing an overall increase, as the National Index increased for its eight consecutive month.” 

On Twitter following the report, Jed Kolko, chief economist at Trulia, said that using what he calls a “better” seasonal adjustment, home prices did not decline in August. 

And in a note to clients following the report, Ian Shepherdson at Pantheon Macro said this should be the last monthly decline and investors should expect a rebound in home prices in the fourth quarter.

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