June Home Prices Up for Third Straight Month
Oxford, Miss. (Aug. 25, 2011) – FNC announced Thursday that U.S. home prices rose for the third consecutive month, ending in June with the largest seasonal gain year to date. With very little data supporting a sustainable housing recovery, recent encouraging uptrends are likely driven by seasonal upswings in home-buying activities, rather than a reflection of more fundamental improvement in underlying housing conditions.
Based on the latest data on non-distressed home sales (existing and new homes), FNC’s Residential Price Index™ [1] (RPI) indicates that single-family home prices were up in June at a seasonally unadjusted rate of 0.9%. As a gauge of underlying home value, the RPI excludes sales of foreclosed homes, which are often sold with large price discounts due to poor property conditions. FNC’s RPI is the industry’s first hedonic price index built on a comprehensive database blending public records with real-time appraisals of property and neighborhood attributes.[2]
All three RPI composites (the National, 30-MSA, and 10-MSA indices) showed month-over-month increases in the last three months, rising more rapidly in June at 0.9%, 0.7%, and 1.5%, respectively. The seasonal upswings have brought a total of 2.1% improvement in home prices nationwide since March. The indices’ year-over-year trends also showed modest improvement since May, declining less rapidly in June at 5.1% (National composite), 5.9% (30-MSA composite), and 4.9% (10-MSA composite).
Among the metro areas tracked by the 30-MSA composite, there is a 50-50 split in June between markets experiencing month-over-month increases and those experiencing month-over-month declines. Boston, Chicago, Cleveland, Denver, Detroit, and Nashville are among those that posted higher prices in each of the April, May, and June months that averaged 3.5%, 1.0%, 1.6%, 0.6%, 2.2%, and 2.2% per month. Boston in particular, has enjoyed extended rebound with prices going up 9.1% in the first half of 2011. Other cities including Cincinnati, Columbus, Minneapolis, Nashville, and San Francisco also showed robust year-to-date price trends, rising between 4-5% since January.
Las Vegas and Orlando, on the other hand, lead the nation in home price declines during 2011, down 5.9% and 4.1% respectively since January. The worst year-over-year trends in home prices are seen in Orlando, Las Vegas, Atlanta, Sacramento, Tampa, Baltimore, and Phoenix, down 15.8%, 12.6%, 12.5%, 10.9%, 10.6%, 9.4%, and 9.2% respectively from a year ago. Detroit and Boston are the only cities where home prices today are higher than a year ago by 4.0% and 3.6%, respectively.
[1] The FNC National Residential Price Index is a volume-weighted aggregate price index consisting of 100 major metropolitan areas across different regions of the U.S. All FNC Residential Price Indices are constructed to capture unsmoothed home price trends in the underlying housing market that excludes foreclosed properties.
[2] Detailed, real-time appraisal data is used to measure property and neighborhood attributes used in the hedonic model to control for their impact on home prices. No appraisal value is used in the index estimation, however.
To interview any of FNC’s mortgage industry experts, contact:
Bill Dabney, manager of public relations
FNC, Inc.
Phone 662/236.8304
bdabney@fncinc.com
About FNC, Inc.
Since 1999, FNC has pioneered real estate information technology, automated appraisal ordering, tracking, documentation and review for lender and servicer compliance with government regulations. FNC’s platforms are in production at seven of the 10 largest U.S. mortgage lenders and provide value to large and small lenders with reduced costs and more efficient loan processing. With collateral management platforms, data and analytics, FNC provides advanced insight into the property backing a loan from origination to capital markets. Visit FNC online at www.fncinc.com.
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