The continued price weakening emerges amid reports of a rising pace of existing-home sales and ongoing improvement in the labor market.
Oxford, Miss. (PRWEB) December 16, 2014
The latest FNC Residential Price Index™ (RPI) shows home prices fell slightly in October, making this the second consecutive month of declines. The continued price weakening emerges amid reports of a rising pace of existing-home sales and ongoing improvement in the labor market. Based on recorded sales of non-distressed properties (existing and new homes) in the 100 largest metropolitan areas, the index dropped 0.1% between September and October. The annual rate of home price appreciation continued to decline in pace, down to 5.7% in October.
Completed foreclosures in October comprise about 12.1% of total existing home sales, up about one percentage point since the summer months. In the for-sale market, the asking price discount and time-on-market have shown a continued uptick in the past six months, partly due to rising inventory. As of November, the median discount is 3.8% while the TOM is 107 days.
FNC’s RPI is the mortgage industry’s first hedonic price index built on a comprehensive database that blends public records of residential sales prices with real-time appraisals of property and neighborhood attributes. As a gauge of underlying home values, the RPI excludes final sales of REO and foreclosed homes, which are frequently sold with large price discounts, likely reflecting poor property conditions.
FNC's national index (a 100-MSA composite index) as well as two narrower indices, 30- and 10-MSA composites show a small decline from September and continued decelerations in the pace of year-over-year growth.
The FNC Composite 30 shows a 50-50 split in October in the number of up- and down-markets. Home prices in Las Vegas, Detroit, and Orlando show the largest increases during October, up 3.3%, 2.5%, and 2.2%, respectively. As 2015 approaches, Orlando, Riverside, and Las Vegas are emerging to be the top growth markets in 2014 by year-to-date changes. While a dozen other cities have seen their annual price appreciation drop to a single-digit pace as the momentum of the housing recovery subsided through 2014, Orlando, Riverside, and Las Vegas continue to show a robust double-digit pace at 18.0%, 14.9%, and 14.3% respectively. Home prices in San Francisco continue to fall, down another 1.0% following September’s 2.6% and August’s 2.1% sharp declines, making the city’s year-to-date price growth only slightly positive at 1.3%.