by Calculated Risk on 1/15/2014 11:31:00 AM

From FNC: FNC Index: November Home Prices Up Steadily by 0.5%

The latest FNC Residential Price Index™ (RPI) shows U.S. home prices continuing to rise at a modest pace despite at a flatter rate when compared to the spring and summer months. This trend largely reflects a decline in housing activity. The index, constructed to gauge underlying property value based on non-distressed home sales only, was up 0.5% in November despite greater downward pressure from rising foreclosure sales during the month. In November, completed foreclosure sales nationwide rebounded to 16.8% of total home sales, up from October’s 14.4% or August’s post-crisis lows of 12.6%.

Based on recorded sales of non-distressed properties (existing and new homes) in the 100 largest metropolitan areas, the FNC national composite index shows that in November home prices rose at a seasonally unadjusted rate of 0.5%, which slightly outpaced October’s price gain. The two narrower indices (30- and 10-MSA composites) likewise show a small uptick in November’s price increase in the nation’s top housing markets. The indices’ year-over-year trends show that as of November 2013 (or 21 months into the housing recovery), annual home price appreciation has reached about 7.0% -- a pace last observed in August 2006.
emphasis added

The 100-MSA composite was up 6.7% compared to November 2012. The FNC index turned positive on a year-over-year basis in July, 2012.

Click on graph for larger image.

This graph shows the year-over-year change for the FNC Composite 10, 20, 30 and 100 indexes. 

Even with the recent increase, the FNC composite 100 index is still off 24.8% from the peak.

I'm expecting the year-over-year change in house prices to slow.