OXFORD, Miss. The residential housing market’s rebound continues.
The latest FNC Residential Price Index shows March to be the 13th consecutive month showing price increases. At the same time, the RPI found 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 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%.
The two narrower composite indices (30-MSA and 10-MSA composites) show similar month-over-month increases but faster year-over-year accelerations at 6.7% and 7.4%, respectively, the company said. Twenty-two of the component markets tracked by the FNC 30-MSA composite index show higher prices in March. Most notably, home prices in Phoenix continue to accelerate rapidly even after rising at a rate of 2.1% per month for 13 straight months. The city’s foreclosure activities have dropped rapidly, with foreclosure sales accounting for only 11.2% of total home sales the lowest since 2007.
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, FNC said these market all seem to have turned the corner toward recovery.
