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56 | Th e M Rep o RT o r i g i nat i o n s e r v i c i n g a na ly t i c s s e c o n da r y M a r k e t local edition ANALYTICS 56 | Th e M Rep o RT o r i g i nat i o n s e r v i c i n g a na ly t i c s s e c o n da r y M a r k e t ANALYTICS Batter Up! RecoveRy expected to enteR 'middle innings' in 2014. While the housing market is still far from "normal," it is inching that way, according to a report released by Zillow. Last year's skyrocketing home price apprecia- tion, frenzied demand from inves- tors, and high tide of negative equity are all expected to subside somewhat this year, according to the real estate company. Nationally, home prices in- creased 6.4 percent year-over-year in the fourth quarter, but annual price gains are expected to fall to 4.8 percent by the end of this year. On a quarterly basis, prices rose 1.4 percent in the fourth quarter, according to Zillow. "Below the surface of last year's market, a number of unset- tling trends started to emerge as a result of rapid and ultimately unsustainable appreciation, set- ting up a bit of a mixed bag for 2014," said Stan Humphries, chief economist at Zillow. However, some of the markets that posted the highest price gains last year are already slow- ing, which according to Zillow is "a welcome sign in markets that risk crossing over into bubble territory as rising mortgage interest rates create affordability issues for homebuyers." Markets such as those in California and the Southwest that experienced rapid appreciation this year may stall this year due to affordability issues, leading to