Home prices continued to rise this summer in all but eight states, including Colorado, which has averaged some of the steepest price drops of any state since June, according to an analysis from QuoteWizard.

The average price of a home in Colorado has declined by $5,665 or just shy of 1% to $580,275 between the end of June and the end of August, according to the study, which used home values from Zillow.  That represented the third-largest dollar decline after California, down by $12,205, and Utah, down by $9,917. On a percentage basis, Colorado’s price decline ranks as the fifth largest after Utah, California, Arizona and Oregon.

“Home prices in Colorado increased by 40% in less than two years, so I think what we are seeing now is a little bit of correction. Rising interest rates are tightening the market and I think we are switching from a seller’s market to a buyer’s one,” Nick VinZant, a senior research analyst at the insurance research site, said in an email.

VinZant said he doesn’t see huge declines, and even if home prices fall 5% to 10%, they will remain way above where they were just two years ago.

“Watching prices decline can be scary and frustrating for people who bought at the top of the market but remember, we aren’t making any more land, home prices will eventually go back up again and your home is a valuable asset,” he said.

This story is from DenverPost.com.