Monday, November 10, 2014

FNC: Residential Property Values increased 6.3% year-over-year in September

by Bill McBride on 11/10/2014 10:03:00 AM

In addition to Case-Shiller, and CoreLogic, I'm also watching the FNC, Zillow and several other house price indexes.

FNC released their September index data today.  FNC reported that their Residential Price Index™ (RPI) indicates that U.S. residential property values decreased 0.3% from August to September (Composite 100 index, not seasonally adjusted). The other RPIs (10-MSA, 20-MSA, 30-MSA) decreased between 0.4% and 1.0% in September. These indexes are not seasonally adjusted (NSA), and are for non-distressed home sales (excluding foreclosure auction sales, REO sales, and short sales).

Notes: In addition to the composite indexes, FNC presents price indexes for 30 MSAs. FNC also provides seasonally adjusted data.

The year-over-year (YoY) change was lower in September than in August, with the 100-MSA composite up 6.3% compared to September 2013.   In general, for FNC, the YoY increase has been slowing since peaking in February at 9.3%.

The index is still down 19.3% from the peak in 2006.

Click on graph for larger image.

This graph shows the year-over-year change based on the FNC index (four composites) through September 2014. The FNC indexes are hedonic price indexes using a blend of sold homes and real-time appraisals.

All of the price indexes had been showing a slowdown in price increases.

The September Case-Shiller index will be released on Tuesday, November 25th, and I expect Case-Shiller to show a further slowdown in YoY price increases.