Portland-area home prices grew at a slower rate in October even as the nation as a whole saw them climb slightly.

Prices in the metro area grew 10.3 percent year over year, according to the S&P CoreLogic Case-Shiller home price index. The city saw the second-largest increase among the 20 metro areas included in the index, following Seattle's 10.9 percent jump.

In Portland, the median price for a home sold in October was $405,900, according to the Regional Multiple Listing Service. It fell to $397,000 in November, which is typical for the season.

Portland's 11-month streak as the leading major city in the Case-Shiller index ended in September.

The shift is a welcome change for the region, where rising home prices continue to hinder residents' ability to afford homes. The rapid pace of gains has also raised fears that prices, which topped their bubble-era high a year ago, could overinflate again.

A key difference between then and now is that buying a home remains out of reach for many because of creditworthiness and the up-front cost of a down payment.

Strict lending standards imposed after the housing crash are intended to prevent those who can't afford a home from buying one.

Low interest rates have helped mitigate the effect of rising home prices, but they have climbed since early November and may continue to rise over the coming years. That could also slow home-price gains.

Nationally, price increases have slowed after bouncing back from the housing collapse in 2012. The nation saw a 5.6 percent increase in October.

Observers expect the increases will eventually slow further to become more in line with wage growth.

"With the current high consumer confidence numbers and low unemployment rate, affordability trends do not suggest an immediate reversal in home price trends," said David Blitzer, S&P's Index Committee chairman. "Nevertheless, home prices cannot rise faster than incomes and inflation indefinitely."

The Case-Shiller index uses repeat sales of the same home to estimate price changes across the entire market. It uses a three-month rolling average.

-- Elliot Njus

enjus@oregonian.com

503-294-5034

@enjus

Photo gallery: Houses on the market surrounded by plenty of trees