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The latest house price reading from CoreLogic showed a 12.5% surge in prices year over year, but the rate of growth is slowing and expected to slow further in the coming months. Mark Fleming, CoreLogic's chief economist said:

In October, the year-over-year appreciation rate remained strong, but the month-over-month appreciation rate was barely positive, indicating that house price appreciation has slowed as expected for the winter. Based on our pending HPI, the monthly growth rate is expected to moderate even further in November and December.

The 12.5% growth rate is simply unsustainable and prices have probably risen too far too fast in the last year. We've seen signs of a mini boom in housing, but as incomes barely keep pace with the rate of inflation this is clearly unsustainable and should moderate.

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Source: CoreLogic: The Housing Boom is Slowing