FNC Index: U.S. Home Prices Up 0.4% in March

FNC Index: U.S. Home Prices Up 0.4% in March

The latest FNC Residential Price Index (RPI), released by the Oxford, MS company on Wednesday, May 15, 2013,  shows the U.S. housing market continued to recover, recording in March the 13th consecutive price increase. In recent months, the ongoing housing recovery has maintained its pace with steady and persistent gains in home prices despite signs of continued job market weakness and soft economic growth.

Low interest rates continue to be a key driver of rising housing demand. The market is also gaining momentum on signs of improved credit and more availability of leverage as mortgage lenders continue to experience rising profits. Foreclosure inventory continues to drop, with distressed sales contributing only 18% to total home sales, down from 24.5% a year ago.


Based on recorded sales of non-distressed properties (existing and new homes) in the 100 largest metropolitan areas, the FNC 100-MSA composite index shows that March home prices rose 0.4% from the previous month, and were up 5.5% from a year ago. On a quarterly basis, home prices rose 0.7% during the first quarter. When compared to the same quarter in 2012, the quarterly price gain was 5.7%.   


Amid widening signs of a sustained housing recovery, a number of the nation’s major housing markets continue to show lagging performance. Among them, Chicago, Baltimore, St. Louis, Cleveland, and San Antonio experienced only a small price gain in the last 12 months. On a quarterly basis, home prices weakened between Q4 2012 and Q1 2013 in Chicago, Portland, Baltimore, Minneapolis, Houston, and St. Louis, despite that these markets all seem to have turned the corner toward recovery.


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