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 sales of foreclosed homes, which are frequently sold with large price discounts, reflecting poor property conditions.
While August home prices are up in nearly all the major housing markets tracked by the FNC 30-MSA composite index, Phoenix and Los Angeles began to show first signs of price weakening, where prices were down 0.1 percent and 0.4 percent, respectively, from the previous month. This softening price trend in Phoenix and Los Angeles – two of the housing market’s most important barometers – emerged after a long streak of rapid price accelerations that averaged more than a 2.0 percent month-over-month increase. Denver, another strong-performing city in the current housing recovery, also recorded a small price drop in August.
At a 2.1 percent July-to-August price change, San Antonio recorded the largest month-over-month price increase. Home prices in Las Vegas climbed another 1.8 percent in August, the 10th consecutive month of rapid price accelerations. Home prices in Charlotte and New York also enjoyed a relatively strong performance. Based on the year-over-year and 20-month price changes, it is clear that the recovery remains uneven across the nation. Most notably, Chicago has so far delivered the smallest price appreciations for homeowners despite that the market is on the mend. At 21.8 percent in August, foreclosure sales continue to make a sizeable portion in the city’s total home sales.
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