Home prices are no longer climbing at rates that threaten to box out the average buyer.

According to the latest Home Price Index from real estate analysis service CoreLogic, property value appreciation rates decelerated to their slowest pace in 21 months during July. National home prices, including those attached to foreclosures, short sales and other distressed properties, rose 7.4 percent from July 2013 to July 2014. That marked the 29th consecutive month of year-over-year price gains, but as inventory levels have shifted, the increases have moderated. That serves as an encouraging development for house hunters who may have been concerned about local affordability.

On a month-over-month basis, national home prices jumped 1.4 percent in July - a more significant spike than was seen either of the previous two months. But, as a HousingWire noted, the consensus expectation is that appreciation rates will continue to plateau as the third quarter closes.

"Having all but stalled during the previous three months, the CoreLogic measure of house prices posted a decent gain in July," Paul Diggle, a property economist with Capital Economics, told HousingWire. "But this is probably no more than a temporary reprieve, and we expect house price growth to continue slowing over the remainder of the year."

A normalizing market 

Forty-nine states saw median home prices increase again on an annual basis, while 10 states and the District of Columbia reached new HPI highs. The impact of distressed sales is waning, as evidenced by the fact that in all 50 states and Washington, D.C., values were up from the previous July. But with fewer foreclosures, large-scale investors have fewer opportunities to flip properties and resell them for profit, meaning the appreciation rates will gradually become more subdued.

It's a dynamic that poses good news for buyers in the sense that more owners may seek to capitalize on their accrued value, assuming the equity gains have been maximized. As more inventory hits the market to support the current demand, prices will continue to soften. First-time buyers, especially, could benefit from a housing market in which local home prices are not increasing by 10 to 15 percent annually.

The flip side is that buyers who sought to take advantage of foreclosure-heavy markets by buying at low prices now have fewer such options. The available inventory will generally be of the more traditional variety, with new construction projects and the aforementioned equity gains dictating much of the sales traffic.

"While home prices have clearly moderated nationwide since the spring, the geographic drivers of price increases are shifting," said Sam Khater, CoreLogic's deputy chief economist. "Entering this year, price increases were led by western and southern states, but over the last few months northeastern and midwestern states are migrating to the forefront of home price rankings."

More slow change to come

CoreLogic's HPI forecast called for a 0.6 percent bump in national prices from July to August, along with a 5.7 percent rate of appreciation from July 2014 through July 2015. As states such as Michigan, Nevada and California - each of which ranked in the top five for annual rates of property value appreciation during July - continue to work through foreclosure inventory, more regional markets will see the same sort of slowdowns.

Excluding distressed sales, Massachusetts, New York, Maine, Hawaii and Florida experienced the sharpest price increases during July. Boston real estate has been particularly prone to appreciation thanks to inventory shortages that are compounded by the region's geographical confines and general lack of space. But, as more sellers hit the market, prospective Bay State buyers could begin experiencing some relief.

The U.S. population keeps growing, prompting concerns that the current level of housing inventory will be inadequate in supporting demand, resulting in property value appreciation rates that box out many traditional buyers. And if a recent survey from real estate franchisor Century 21 is any indication, those would-be single-family buyers will also be facing increasingly steep competition from an emerging population: the single buyers.

Shifting dynamics, new priorities 

Data from the National Association of Realtors revealed nearly one-third - 32 percent - of all purchases made in 2013 were by a single buyer. Single-person households represented just 23 percent of the market share, compared with 17 percent in 1970. It's a phenomenon due in part to post-recession qualification standards for mortgage approval, but also to the fact that people are getting married later - if at all - and living by themselves longer. For many of today's adults, marriage is not necessarily prioritized ahead of a home purchase, and as the survey found, single buyers tend to be of the ambitious, serious-about-their-investments sort.

"We are in the midst of a shift in the homebuying population," said Rick Davidson, Century 21 Real Estate LLC's president and chief executive officer. "This survey shows that homeownership is a major life decision for singles, and that is just as important a part of the American Dream for singles as it is for married couples. Real change, innovation and market growth stems from understanding consumers' drive, motivation and sentiment, and how these can shift from person to person."

Davidson added that the job of a company like Century 21 is to understand the priorities and desires of today's buyers and attempt to meet them. In many cases, single buyers are investors, either using real estate as a long-term financial vehicle or individually representing the broader interests of a larger entity.

The more "traditional" single buyer, meanwhile, is typically a prudent spender, willing to make sacrifices that help achieve his or her financial goals. Sixty percent of single homeowners, for example, said they would dine out less frequently in order to purchase a home, while 54 percent agreed that they would cut back on entertainment and 51 percent would spend less toward vacations. The most important physical attributes of a home for surveyed single buyers were space and square footage (referenced by 59 percent of respondents), a yard (57 percent), and proximity to work or school (47 percent). Many respondents also cited various elements of the buying process as "very intimidating" or "extremely intimidating" - perhaps as a result of going it alone. The most frequently referenced were:

• Making an offer and/or negotiating the sale price (38 percent)
• Obtaining a mortgage loan (36 percent)
• Moving (31 percent)
• Closing (30 percent)
• Searching for/locating a new home (25 percent)

A generation divided

While the Century 21 survey highlighted a segment of the homebuying population that is vital to the market's growth, there's also a significant cross-section of younger adults who are driving up prices in the rental market. With mortgage credit approval harder to come by than it was prior to the recession, the number of millennials renting apartments still greatly exceeds the portion of that demographic owning homes.

Preparing to buy a new home can be both exhilarating and stressful at the same time. Between credit cleanup saving for a down payment and shopping for a property that meets their budget as well as their desires, prospective home buyers have a lot on their minds. Many house hunters understandably focus on the price tag and the monthly mortgage payments, which can vary as interest rates fluctuate. But, first-timers must also remember the many hidden costs associated with the investment.

As the National Association of Realtors notes, budgeting for a new home purchase should account for all the additional items, which can amount to more than one month's mortgage payment, depending on what and where you buy. Being prepared means familiarizing yourself with all the parties involved in the process and having extra cash stashed away both for costs that may be hidden upfront or on a more sporadic basis. Some of these expenses include:

• Move-in costs. Depending on the distance you're moving, the size of your family, the amount of furniture you have and a litany of other factors, moving can quickly become expensive. If you choose to hire a professional moving company, be sure to conduct thorough research, using resources such as the Better Business Bureau to choose the most cost-efficient and reliable options. Remember that you'll also have to set up, connect and pay for utilities such as water, electricity, cable and gas, all of which must be factored into your monthly budget.

• Transaction-related fees. In addition to that sizeable down payment you've worked so hard to save for, don't forget about what's owed to your real estate professional, your mortgage appraiser and your home inspector. There are also significant taxes that add to the upfront purchase cost, perhaps even some associated with the previous owner's time in the house, depending on when it's purchased. In the event that you're moving into a house or condo that's part of a homeowners association, you'll owe dues on either a monthly or upfront basis - perhaps both - but these will help cut down on some of the other maintenance expenses over time. 

• Upkeep and cosmetic concerns. Your short-term plans for a home may dictate the need to account for the costs of maintenance and renovations sooner rather than later. You can save on your mortgage payments by purchasing a home that needs work, but doing so requires an accurate understanding of how much each project will cost and at what pace the process can unfold. Over the long term, building value in your home is contingent upon enhancing and maintaining it. The age of the structure and the level of appreciation you seek may mean that considerable monthly expenses are allocated toward routine upkeep and minor improvements. These efforts can pay off doubly down the road if you are looking sell or refinance the home, but the expenses associated with them must be accounted for carefully and accurately. 

• Insurance items. Homeowners insurance and title insurance are not optional expenses - they're absolutely essential to securing the value of your home and everything in it. Title insurance protects you from liens that may be attached to the property by way of a previous owner, or from any complications with the deed. Private mortgage insurance may be required if you buy the home with a down payment of less than 20 percent of the purchase price. And depending where you live, it's worth exploring the need for - or requirements surrounding - flood insurance and other types of coverage against natural disasters. These likely aren't covered in your standard property insurance policy, but they'll be well worth the expense in the unfortunate event of a worst-case weather scenario.

Preparing to buy a new home can be both exhilarating and stressful at the same time. Between credit cleanup saving for a down payment and shopping for a property that meets their budget as well as their desires, prospective home buyers have a lot on their minds. Many house hunters understandably focus on the price tag and the monthly mortgage payments, which can vary as interest rates fluctuate. But, first-timers must also remember the many hidden costs associated with the investment.

As the National Association of Realtors notes, budgeting for a new home purchase should account for all the additional items, which can amount to more than one month's mortgage payment, depending on what and where you buy. Being prepared means familiarizing yourself with all the parties involved in the process and having extra cash stashed away both for costs that may be hidden upfront or on a more sporadic basis. Some of these expenses include:

• Move-in costs. Depending on the distance you're moving, the size of your family, the amount of furniture you have and a litany of other factors, moving can quickly become expensive. If you choose to hire a professional moving company, be sure to conduct thorough research, using resources such as the Better Business Bureau to choose the most cost-efficient and reliable options. Remember that you'll also have to set up, connect and pay for utilities such as water, electricity, cable and gas, all of which must be factored into your monthly budget.

• Transaction-related fees. In addition to that sizeable down payment you've worked so hard to save for, don't forget about what's owed to your real estate professional, your mortgage appraiser and your home inspector. There are also significant taxes that add to the upfront purchase cost, perhaps even some associated with the previous owner's time in the house, depending on when it's purchased. In the event that you're moving into a house or condo that's part of a homeowners association, you'll owe dues on either a monthly or upfront basis - perhaps both - but these will help cut down on some of the other maintenance expenses over time. 

• Upkeep and cosmetic concerns. Your short-term plans for a home may dictate the need to account for the costs of maintenance and renovations sooner rather than later. You can save on your mortgage payments by purchasing a home that needs work, but doing so requires an accurate understanding of how much each project will cost and at what pace the process can unfold. Over the long term, building value in your home is contingent upon enhancing and maintaining it. The age of the structure and the level of appreciation you seek may mean that considerable monthly expenses are allocated toward routine upkeep and minor improvements. These efforts can pay off doubly down the road if you are looking sell or refinance the home, but the expenses associated with them must be accounted for carefully and accurately. 

• Insurance items. Homeowners insurance and title insurance are not optional expenses - they're absolutely essential to securing the value of your home and everything in it. Title insurance protects you from liens that may be attached to the property by way of a previous owner, or from any complications with the deed. Private mortgage insurance may be required if you buy the home with a down payment of less than 20 percent of the purchase price. And depending where you live, it's worth exploring the need for - or requirements surrounding - flood insurance and other types of coverage against natural disasters. These likely aren't covered in your standard property insurance policy, but they'll be well worth the expense in the unfortunate event of a worst-case weather scenario.

As 2014 reaches its second half, the labor market has continued its steady improvement and many consumers have started to regain confidence in the strength and sustainability of the economy. Over the final two quarters, those factors could spawn more demand for homebuying. May and June saw a significant upswing in new home sales, offering promise that the first-quarter slowdown was mostly weather-induced and, more importantly, fully in the rearview.

Still, in many areas of the country - particularly crowded metro regions along the coasts, such as Boston, New York or San Francisco - demand continues to exceed available inventory levels. As such, both first-time and move-up buyers need to be aware of some of the roadblocks that may present themselves.

A recent CNBC piece detailed some of the common mistakes and misconceptions of modern-day house hunters - all of which prospective buyers should be aware of and try to avoid when entering into sometimes competitive environments. Under these circumstances, the margin for error is thin, so being educated, prepared and aware of your surroundings is essential. Here are a few of the more recurring themes: 

• Overvaluing online information. Sometimes it seems there are new resources, following in the footsteps of the likes of Zillow and Trulia, being unveiled every week. And these tools and applications can offer a lot of insight for buyers. But too often people make the mistake of treating them as a sort of guiding gospel when they are really just price estimations dictated by constant changes to the marketplace. It's dangerous to assume that these estimations are automatically in line with what the seller will be asking for, especially as neighborhoods change, with property values appreciating thanks to comparable recent sales or fewer foreclosures in the area. The safest approach is often to employ the services of a trusted real estate professional who knows the area, and allow their expertise to guide you, especially during a bidding process.
• Failing to realize renting may be the better option. Owning a home is an undeniably attractive proposition, but only if you're prepared for all the costs and responsibilities that come with it. That means paying for homeowners insurance, title insurance, closing costs and perhaps even association fees - all of which can quickly add up to a total that's comparable to what your monthly mortgage payments equal. Make sure you conduct a thorough rent-versus-buy analysis based on the market in question, your income, expenditures and the duration of time you plan to stay in the given area. If you're unsure whether living in the neighborhood for at least five years appeals, then buying probably isn't the best decision.
• Underestimating the power and presence of all-cash buyers. Traditional buyers use home loans to pay for their purchases, but the post-recession market has been anything but traditional. Cash buyers dominated many parts of Arizona, California and Nevada, among other places, scooping up foreclosed or otherwise distressed homes en masse, often rehabilitating them and reselling for profit. The process, commonly known as flipping, has eased somewhat in terms of the regularity with which it's seen, but certain purchase markets are still influenced by these sort of buyers. In many instances, they represent the interests of large-scale investors, show up with cash in hand and make offers that are hard to compete with. From the sellers' perspective, a high cash offer is tough to beat, since it simplifies the process and represents a sure thing. For buyers using a mortgage, the best defense against these competitors is credit cleanup, along with best efforts to save as much for a down payment as possible and to ensure that all other finances are in order.

Despite a lot of discussion surrounding the ways in which the housing market is cooling, many homeowners continue to experience equity gains from their properties.

The pace may have slowed somewhat, but property values are still appreciating on a year-over-year basis, especially in markets where inventory levels are tight. The latest edition of the Market Pulse, from real estate analysis service CoreLogic, explored the notion that pent-up supply and demand might be "the new normal." That means that in a recovering economy, where new home construction rates continue to lag behind historical levels, there's a lot of bubbling interest from buyers biding their time. This is a good thing, especially given the theory that all the so-called shadow inventory - homes stuck somewhere in the foreclosure process - will eventually become available to prospective buyers.

But for now, many regions have only so many properties to offer, as many current homeowners continue to reap the benefits of their appreciating property values. While they wait, anticipating that the market will eventually be flooded with a greater level of supply, many are investing in home improvements that figure to only further enhance the sales prices their residences fetch. The best way to ensure a return on such an investment, of course, is to not spend too much on the front end. Here are a few cost-efficient remodeling options you can explore as a homeowner in the interest of accruing more internal value, whether your ultimate plan is to sell or capitalize through a home equity loan.

• A fresh paint job. You don't need to go all-out and redo the entire exterior of your home in order to squeeze additional value out of it. Instead, you may be surprised how dramatically improved a single room can look with a revitalizing coat of paint - and that small investment can factor greatly into the overall value of the home. Similarly, you can touch up the front, back and side doors - maybe the shutters and trim - for a few hundred dollars and greatly enhance the home's curb appeal. Not only will these efforts make certain features of the home look younger and refreshed, but it can also serve as a way to mask minor imperfections.
• Creating extra light. In most cases, replacing or installing new windows is a more cost-efficient option than adding more light fixtures, especially if the goal is to improve the level of natural light in the home. Aside from generating a cozier, more expansive feel within the space, natural light can also help limit the use of other utilities, making a home more efficient. According to Redfin, DIY window replacements typically cost between $200 and $600 - a relatively modest expense given the potential payoff. The window type, such as whether it's single- or double-paned, and size will play large roles in determining the cost, but given the budding demand for eco-efficient homes, any home improvement measure that serves to reduce a property's long-term carbon footprint is a worthy one.
• Adjusting floor plans. One of the most pivotal features of a home's interior can be the flooring - particularly that of the bathroom and the kitchen. If either is beginning to wear or looking less than appealing, there are a number of approaches you can take in the interest or remedying the situation. But perhaps the most cost-efficient option is to re-tile, which you can probably handle on your own for under $2,000 depending on the size of the room in question. Professional services might be worth looking into, but if you have the time and resources, you can manage to significantly upgrade the appearance of your flooring at a relatively meager cost.