\nBy PAUL WISEMAN
\n\tTHE ASSOCIATED PRESS
\n\tWASHINGTON \u2014 U.S. home prices rose in August from a year earlier at the fastest pace since February 2006, according to new data from a home price index.<\/p>\n
\tBut the price gains slowed in many cities from July, a sign that the spike in prices over the past year may have peaked.<\/p>\n
\tPrices in Las Vegas rose 29.2 percent from a year earlier, the fastest pace in the nation. But they are still 47 percent lower than they were before the housing market collapsed.<\/p>\n
\tThe Standard & Poor\u2019s\/Case-Shiller 20-city home price index rose 12.8 percent over the 12 months ending in August. That\u2019s up from 12.4 percent in July from a year earlier. All 20 cities showed year-over-year gains.<\/p>\n
\tHowever, a measure of month-over-month prices for the 20 cities rose just 1.3 percent in August. That\u2019s\u2019 down from a 1.8 percent month-over-month gain in July. And 16 of the 20 cities reported more modest price increases in August than in July.<\/p>\n
\tGreater demand and a tighter supply of homes for sale have helped drive prices higher over the past year. But over the summer, mortgage rates jumped from their record lows. And weaker job growth is also discouraging potential home buyers.<\/p>\n
\tPrices in Denver and Dallas hit record levels in August. None of the other cities have returned to where they were before the real estate collapse. Average home prices are only back to mid-2004 levels and 22 percent below their April 2006 peak.<\/p>\n
\tAnd many of the cities are seeing their gains slow.<\/p>\n
\tPrices in San Francisco increased 0.9 percent in August, down from a 2.2 percent monthly increase in July.<\/p>\n
\tDespite rising for 26 straight months, prices in Detroit are still lower than they were in January 2000.<\/p>\n
\tEllen Haberle, an economist with the national real estate brokerage Redfin, said that prices have been driven higher by a limited supply of houses on the market. She expects home sales to fall in September and October partly because the federal government shutdown likely scared off potential home buyers.<\/p>\n
\tContingent Macro Advisors economists Maninder Sibia and Steven Wood said housing inventory was only 83 percent of normal levels. They expect the supply to increase as rising prices encourage home owners to put their houses on the market.<\/p>\n
\tThe Case-Shiller 20-city index covers roughly half of U.S. homes. It measures prices compared with those in January 2000 and creates a three-month moving average. The August figures are the latest available. They are not adjusted for seasonal variations so monthly gains reflect more buying activity over the summer.<\/p>\n