FNC: Home Prices Rose 0.6% In July, But More Markets Saw Declines

Posted by Patrick Barnard on September 16, 2014 No Comments
Categories : Residential Mortgage

Home prices continued to inch up in July, rising 0.6% compared to June, and were 7.4% higher compared to July 2013, according to FNC's Residential Price Index.

The report, which excludes distressed sales, shows that home prices have risen on a year-over-year basis for the past 29 months. However, the rate of appreciation has slowed considerably in the past six months.

As home prices continue to strengthen, mortgage defaults and foreclosure starts have fallen to record lows. As of July, foreclosure sales comprised only 10.5% of total existing home sales.

Despite the rise in home prices, market conditions continued to be favorable in July, with the average asking-price discount slightly above 2% and time-on-market a little more than 90 days. Preliminary data on August and September's for-sale transactions show minimal change in these two market liquidity metrics.

Prices were up in most markets in July. Cities that saw the biggest increases in home price appreciation included Tampa, Fla. (2.0%); Sacramento, Calif. (1.8%); Baltimore (1.6%); and San Francisco (1.6%). Cities that saw home prices decline included Charlotte, N.C., and Miami (both down more than 2%).

Of the 100 metropolitan markets covered in FNC's report, more than 30 performed considerably below average in July, most notably St. Louis and Cincinnati. In St. Louis, the 3.0% decline in home prices in July marks the 11th consecutive month of year-to-year price depreciation. Home prices in that area have declined at an average of 1% year to year since November 2013.

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