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November home prices rise despite uptick in foreclosure sales.

Oxford, Mississippi-based FNC released its latest Residential Price Index[TM] (RPI) on Jan. 15 and the index showed that November home prices for non-distressed sales rose by 0.5 percent compared with the prior month. The index rose modestly despite downward price pressure coming from an increase in foreclosure sales during the month, FNC reported.

In November, completed foreclosure sales nationally accounted for 16.8 percent of all sales. That was up from October's number of 14.4 percent of all home sales and August's post-crisis low of 12.6 percent, the company said.

FNC's national composite index measures recorded sales of non-distressed existing and new homes in the 100 largest metropolitan areas. The November composite index showed prices up by 0.5 percent compared with a gain of 0.3 percent in October 2013. On a year-over-year basis, the composite index in November 2013 showed prices rose by 6.7 percent over November 2012. That was up slightly from October 2013, when the year-over-year gain was 6.5 percent.

FNC also produces two narrower indexes, one for the 30 largest metropolitan statistical areas (MSAs) and another for the top 10 MSAs.

"Among the country's major metropolitan areas, Seattle; Columbus [Ohio]; and Nashville [Tennessee] recorded the largest [month-to-month] price increase in November at 2.6 percent, 2.4 percent and 2.1 percent, respectively," according to FNC.

The company singled out Riverside, California, for its strong price appreciation in recent months. FNC said that metro area has averaged 2 percent price appreciation per month since May 2013, as the city's foreclosure sales continue to rapidly decline. FNC noted that at 11.7 percent, Riverside continues to have the highest foreclosure sales rate as a percentage of all home sales among California's largest metro markets.

Home prices moved lower in four metro areas in November, FNC reported. In Denver, the price index declined for a fourth consecutive month. San Diego and San Francisco also showed year-over-year price decelerations, FNC said. San Diego's market saw year-over-year prices grow by 6.3 percent, while San Francisco posted annual price gains of 5.4 percent.

Topping the list of MSAs with the largest price gains from November 2012 to November 2013 was Las Vegas at 24.7 percent. Phoenix came in second at 19.2 percent, followed by Riverside at 19.1 percent. Rounding out the top five were Los Angeles with year-over-year price gains of 17.7 percent and Orlando, Florida, with 16.3 percent.

Only four metro areas showed monthly price declines in the November report. The markets were Denver (-0.1 percent); St. Louis (-0.4 percent); Baltimore (-0.9 percent); and Cleveland (-1.7 percent). FNC noted that foreclosure rates in St. Louis and Cleveland (18.1 percent and 20 percent, respectively) remain among the highest in the nation.
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Title Annotation:NEWS ROOM
Comment:November home prices rise despite uptick in foreclosure sales.(NEWS ROOM)
Publication:Mortgage Banking
Geographic Code:1U9CA
Date:Feb 1, 2014
Words:469
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