OXFORD, MS-Local mortgage technology company FNC Inc. released figures this weekend pointing to favorable developments in the housing sector including declining foreclosure activity and rising home sales. All of this, combined with improved liquidity, has sparked a climb in US property values.
FNC’s latest Residential Price Index (RPI) shows that, based on recorded sales of non-distressed properties in the 100 largest MSAs, home prices nationally were up 0.4% in October. This figure represents the eighth consecutive month during which prices were on the rise which, in turn, led to a total YTD appreciation rate of 5.1%. Furthermore, foreclosures as a percentage of total home sales were 17.6% in October, a definite decline from 26.7% at the beginning of the year and 23.5% year over year.
On a year-over-year basis, Phoenix, Denver, Detroit, Washington, D.C., and Miami show the largest climbs, up 21.3%, 13.7%, 8.8%, 7.4%, and 7.1% respectively from a year ago. The recovery in Phoenix continues to outpace the rest of the country. With the exception of Columbus, Ohio, and Chicago, all major housing markets are exhibiting a positive year-over-year and year-to-date price change.
The causes for the uptick include continued economic activity expansion and stronger employment rates. FNC’s RPI is the 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 value, the RPI excludes sales of foreclosed homes, which are frequently sold with large price discounts reflecting poor property conditions.