Monday, July 18, 2016

FNC: Residential Property Values increased 4.9% year-over-year in May

by Bill McBride on 7/18/2016 08:01:00 AM

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

FNC released their May 2016 index data.  FNC reported that their Residential Price Index™ (RPI) indicates that U.S. residential property values increased 0.7% from April to May (Composite 100 index, not seasonally adjusted). 

The 10 city MSA increased 0.3% (NSA), the 20-MSA RPI increased 0.5%, and the 30-MSA RPI increased 0.6% in May. These indexes are not seasonally adjusted (NSA), and are for non-distressed home sales (excluding foreclosure auction sales, REO sales, and short sales).

From FNC: FNC Index: May Home Prices Up 0.7%

According to the latest FNC Residential Price Index™ (RPI), U.S. home prices rose at a less robust pace in May, up 0.7% at a seasonally unadjusted rate. On a year-over-year basis, home price appreciation continues to level off, ending in May with a seasonally unadjusted rate of 4.9%.
Notes: In addition to the composite indexes, FNC presents price indexes for 30 MSAs. FNC also provides seasonally adjusted data.

The index is still down 11.6% from the peak in 2006 (not inflation adjusted).

Click on graph for larger image.

This graph shows the year-over-year change based on the FNC index (four composites) through May 2016. The FNC indexes are hedonic price indexes using a blend of sold homes and real-time appraisals.

Most of the other indexes are also showing the year-over-year change in the mid single digit range.

Note: The May Case-Shiller index will be released on Tuesday, July 26th.