After months of weak data suggesting that home sales have stalled, house prices are finally starting to reflect the slowdown that began last year.

According to the CoreLogic Home Price Index, house price appreciation slowed to 6.9% in December.

The rate of house price growth was the lowest since the late summer of 2020.

House price growth also slowed by 0.4 per cent from the previous month.

CoreLogic said house price appreciation has slowed from a 20 per cent peak in April last year, which was also a series high.

CoreLogic said the following markets are at the highest risk of home price declines.

Salem, Oregon.

Bellingham, Washington.

Bremerton-Silverdale, Washington.

Crestview-Fort Walton Beach-Destin, Florida.

Olympia-Turnwater, Wash.

The slowdown is due in part to a pullback in buyers.

The report said high mortgage rates and an uncertain economic outlook, especially with the large number of layoffs in the technology sector, have hit demand hard in several housing markets.

CoreLogic said Idaho was the only state where home prices fell 1 percent year-over-year.

Back in April, home values in the state increased by 17 per cent.

"The continued slowdown in home prices at the end of 2022 reflects weakening demand in the housing market," Selma Hepp, CoreLogic's chief economist, said in a statement.

"However, while home prices have continued to fall since November, the rate of decline is lower than seen over the summer and the cumulative decline in home prices since last spring's peak is still only 3 percent," she added.

Herp expects the price deceleration to continue into the spring, with the housing market "likely to see some year-on-year declines".

She added that the recent drop in interest rates, however, could boost buyer demand and drive the spring home buying season.

CoreLogic said annual growth in home prices will slow to 3 per cent by December 2023.

Cities with the highest year-over-year home price increases include Miami, and Tampa at 19.5% and 14.1%, respectively.

Florida remains the state with the highest annual home price increase at 15.2 per cent.

Vermont came in second with 13.5%, followed by South Carolina with a 12.2% year-on-year increase in home prices.