A 2.5% increase in residential prices between the second and third quarters marked the fastest growth in the current housing recovery, according to data from FNC Inc.
The Oxford, Miss.-based mortgage technology provider’s Residential Price Index is constructed to gauge the price movement among the underlying nondistressed home sales that blends public records of residential sales prices with real-time appraisals of property and neighborhood attributes. Based on recorded existing and new home sales in the 100 largest metropolitan areas, the FNC 100-MSA composite index shows that September home prices increased at a rate of 0.5%, which is down from August and July that had property value growth of 0.7% and 0.8%, respectively.
Meanwhile, home prices were up on a year-over-year basis by 6.2%.
Home prices are expected to grow at a more moderate pace in the next few months as housing demand tapers off during the winter. In a sign that slower growth is ahead, the October sales-to-list price ratio fell to 96 in September from 96.5 in July and August.
In FNC’s 30-MSA composite index, 27 cities experienced a rise in home prices from August to September, led by Miami, Baltimore, Charlotte and Riverside, Calif., each at about 2%. Other notable markets that saw a sizable increase in residential values were Las Vegas, Los Angeles and Phoenix, all respectively up by 1.4%, 1.2% and 1.2% after a flat August month.
As of September, 15 MSAs have shown double-digit price growth since early 2012, FNC says. Markets that had a high volume of distressed properties during the 2008-2009 mortgage crisis continue to lead home price recovery efforts, including Phoenix, Las Vegas, Riverside, Los Angeles and Orlando. The 100-MSA composite showed an 11% cumulative price recovery nationwide.
