Although home price growth is expected to eventually decelerate, CoreLogic's home price index for February shows it grew slightly on both a year-over-year and consecutive-month basis.

The HPA of all homes, including distressed properties, was up 7% year over year and 1% from the previous month in February. In January, home price appreciation was up 6.9% year over year and 0.7% from December 2016 before revision.

"Home prices continue to grow at a torrid pace so far in 2017," said Frank Martell, president and CEO of CoreLogic, in a press release. "Home prices are at peak levels in many major markets and the appreciation is being driven by a number of dynamics — high demand, stronger employment, lean supplies and affordability."

CoreLogic projects home prices will continue to appreciate through next year but slow gradually. The company forecasts that by February 2018, year-over-year HPA will be 4.7% and by March 2018 consecutive month HPA will be 0.4%.

The current rise in the national average continues to be fueled in part by some unusually hot markets in the Pacific Northwest and Colorado.

"Home prices and rents have risen the most in local markets with high demand and limited supply, such as Seattle, Portland and Denver," said CoreLogic Chief Economist Frank Nothaft.

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