Home » NEWS » FNC: U.S. home prices up year-over-year for first time since bust

FNC: U.S. home prices up year-over-year for first time since bust

OXFORD — FNC’s latest Residential Price Index (RPI) indicates U.S. residential property values continue to climb, capturing a fifth consecutive monthly gain as the result of rising demand.

More notably the index shows that for the first time since the housing market collapsed in 2007, home prices are beginning to recover on a year-over-year basis, highlighting a major turning point in market trends.

Nationwide, July home prices — based on recorded sales of non-distressed properties (existing and new homes) in the 100 largest metropolitan areas — were up at a seasonally unadjusted rate of 0.9 percent from the previous month. They were up 0.7 percent from a year ago in July 2011. Year to date, home prices rose more than 4.6 percent since January.

All three FNC RPI composites (the National, 30-MSA and 10-MSA indices) show a sustained up-trend, each with a cumulative gain of 3.0 percent in the last three months. The two broader indices are at their 12-month highs with positive year-to-year growth for the first time in five years.

The majority of the markets tracked by the FNC 30-MSA composite index show continued price strengthening in July. Month-to-month, home prices rose 4.4 percent in San Francisco, 3.6 percent -Detroit, 3.4 percent -Boston, 2.2 percent -San Diego and 2.0 percent -Riverside, Calif. If based on a three-month moving average (May, June, and July), Phoenix, Detroit, San Francisco, and Boston show the best price momentum averaging 2.8 percent, 2.6 percent, 2.1 percent and 2.0 percent per month, respectively. In the meantime, home prices in the Chicago area began to show signs of seasonal setback, down 0.9 percent in July after a 0.1 percent decline in June.

Nearly half of the component markets are exhibiting positive year-to-year growth, led by Phoenix at 10.1 percent followed by Detroit-7.2 percent, Houston-5.8 percent, Miami-4.3 percent and Dallas-4.0 percent. The Phoenix market continues to lead the housing rebound with its strong growth momentum in recent months. Between January and July, home prices in the Phoenix area rose 12.7 percent, or an average of 2.1 percent per month. Significant year-to-date price appreciation is also seen in Detroit-10.1 percent, San Francisco-9.1 percent, Dallas-8.7 percent, Boston-8.1 percent and Washington, D.C.-7.7 percent.

 

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

About MBJ Staff

Leave a Reply

Your email address will not be published. Required fields are marked *

*