OXFORD — FNC Inc.’s latest Residential Price Index (RPI) indicates that October U.S. home prices continued to weaken at a modest pace despite recent positive home-sales data.
The trend is a reminder that the housing market remains constrained by weak economic fundamentals and the overhang of distressed properties, FNC reports.
October marks the third month of continued price declines and is unfortunately accompanied by a moderate downward index revision to the previous month.
Based on the latest data on non-distressed home sales (existing and new homes) through October, FNC’s national RPI shows that single-family home prices fell in October to a seasonally unadjusted rate of 0.6 percent. The September index value is revised downward from -0.4 percent to -0.9 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.