OXFORD — FNC’s latest Residential Price Index (RPI) indicates that U.S. home prices continued to decline despite recent signs of job recovery and rising home sales and new residential construction.
The continued price retreat is no surprise as the housing market remains constrained by high volumes of delinquent mortgages and foreclosures. November marks the fourth consecutive month-to-month declines in residential property value.
Modest downward pressure on home prices remains as banks continue to work through the backlog of delinquent mortgages and REO properties.
Based on the latest data on non-distressed home sales (existing and new homes) through November, FNC’s national RPI shows that single-family home prices fell in November to a seasonally unadjusted rate of 0.4 percent. 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.
All three RPI composites (the National, 30-MSA and 10-MSA indices) show month-to-month declines in November, ranging from -0.4 percent at the national level to -0.9 percent across the nation’s top 10 housing markets.
The indices’ year-to-year trends remain relatively stable in recent months, showing no signs of deceleration or acceleration. The two broader indices indicate a nearly 5.0 percent decline in the 12-month period between November 2010 and November 2011, or -0.4 percent per month on an annualized basis. The 10-MSA composite index lost about 4.0 percent during the period, or -0.3 percent per month annualized.
Among the individual markets tracked by the FNC 30-MSA composite index, about one in four shows a positive monthly price change in November.
Peak to date, nearly a third of the component markets of the FNC 30-MSA composite index are seeing home prices falling more than 50 percent from the peak of the housing market.
BEFORE YOU GO…
… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.
If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.Click for more info