Home values in major metropolitan areas rose 5.3% in the second quarter of this year compared with the 1998 period, according to First American Real Estate Solutions.

That was down from 7% in the first quarter, the real estate information company said.

"We expect home-value increases to moderate in the second half of 1999,'' said Nima Nattagh, the company's research director.

First American's quarterly report said home values in most metropolitan areas rose 3% to 6% in the second quarter but remained soft in a handful of areas in the Northeast -- primarily New Jersey and Pennsylvania.

Los Angeles and Boston fared best, with home values climbing 14.6% and 12.2%, respectively.

But values in Los Angeles are still 10% below where they were in 1990, the peak of the last boom, First American said.

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