In November home prices had their largest year-over-year gain in over six years, according to the FNC Residential Price Index. The 4.2% increase is the largest since October 2006.
By individual markets, prices in Phoenix are up 21.4% for November over the same month in 2011. In its 30 metropolitan statistical area composite, only one market, Chicago, found prices declining when compared with November 2011, a scant 0.8%.
However, viewed against October’s data, 11 markets recorded price declines, with Chicago leading the pack, down 1.8%.
The FNC index excludes sales of foreclosed homes. That being said, in its comments, the company noted that in Chicago, foreclosure sales remain at elevated levels; one in three homes sold are foreclosures or short sales.
Although companies do employ different methodology, the FNC data still jive with data from others, including Redfin and Clear Capital. But these firms are noting that lower levels of inventory are having an effect on home sales.
FNC, an appraisal technology based in Oxford, Miss., said RPI blends public records of residential sales prices with real-time appraisals of property and neighborhood attributes.