Tuesday, February 10, 2015

FNC: Residential Property Values increased 5.0% year-over-year in December

by Bill McBride on 2/10/2015 05:21:00 PM

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

FNC released their December index data today.  FNC reported that their Residential Price Index™ (RPI) indicates that U.S. residential property values increased slightly from November to December (Composite 100 index, not seasonally adjusted). 

The 10 city MSA RPI declined in December, and the 20-MSA and 30-MSA RPIs increased . 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 December than in November, with the 100-MSA composite up 5.0% compared to December 2013.   In general, for FNC, the YoY increase has been slowing since peaking in March at 9.0%.

The index is still down 19.6% 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 December 2014. The FNC indexes are hedonic price indexes using a blend of sold homes and real-time appraisals.

Most of the price indexes have been showing a slowdown in price increases.

The December Case-Shiller index will be released on Tuesday, February 24th, and I expect Case-Shiller to show a further slowdown in YoY price increases.