Housing values are continuing to rise in the Twin Cities metro area, but the rate of increase is starting to slow.
Metro area home prices rose 9.4 percent over the year ending in April, the widely followed S&P/Case-Shiller Index reported Tuesday. Annual gains for March were 11 percent.
Housing prices nationwide appear to be coasting into a normal pattern, where they rise with the rate of inflation plus a few percentage points, said David Blitzer, chairman of the index committee at S&P Dow Jones Indices.
"Most likely by the end of this year we'll be in that range," he said. "Home prices will be going up something like 3 to 8 percent year over year."
If home prices continue to rise as they have been, many people could be priced out of the market, he added.
While all the 20 cities in the Case-Shiller index are reporting annual growth in housing prices, only Boston saw a higher growth rate in April compared with March.