Home Prices Reach 2009 Levels, Gains Moderating

With the FNC Residential Price Index^TM (RPI) levels for August home prices have climbed backrnto December 2009 levels.  But the index,rnwhile it rose 0.6 percent from the July level, is beginning to display signs ofrna subsiding momentum.   </p

Augustrnrepresented the 18^th consecutive month in which home prices havernclimbed on the RPI, indicating that the housing recovery remains well underway.rnHowever that month-over-month increase was smaller than the 0.8 percent monthlyrnincrease in July and 0.9 percent in June. The year-over -year appreciation increasedrnover that of earlier months, gaining 5.3 percent compared to the 4.7 percentrnand 4.6 percent annual increases in June and July. The FNC 100-MSA composite isrnbased on sales of non-distressed new and existing residential properties in thern100 largest metropolitan areas. </p

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ThernSeptember median sales-to-list price ratio was also moderated, coming in atrn96.2, a 3.8 percent listing price markdown among closed sales, compared to 97.2rnin August. </p

Housingrnmarket fundamentals, especially foreclosure filings and the foreclosurerninventory, continued to improve and contributed to rising home prices.  The share of the home sales coming fromrnforeclosures dipped in August to 12.4 percent from 12.7 percent in July and wasrnmore than 4.5 percent below one year earlier. </p

Nearly all of the major housingrnmarkets in the FNC 30-MSA posted price increases in August, but some alsornshowed signs of weakening.  Phoenix andrnLos Angeles had month-over-month declines of 0.1 and 0.4 percent respectively followingrnmany months of increases averaging 2.0 percent. rn Denver, another strong-performer inrnthe current recovery, also suffered a small loss in August. </p

San Antonio recorded the largestrnmonthly increase, 2.1 percent and Las Vegas climbed 1.8 percent, the 10^{th</supconsecutive month of rapid price acceleration. rnHome prices in Charlotte and New York also performed strongly.  Chicago, where foreclosures sales made uprn21.8 percent of the market in August, prices have appreciated by the smallestrnamount of any city in the 30 MSA index.</p}

FNC’s RPI blends public records ofrnresidential sales prices with real-time appraisals of property and neighborhoodrnattributes.  The RPI excludes sales ofrnforeclosed homes, which are frequently sold with large price discounts,rnreflecting poor property conditions. </prn 

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