Home Price Growth Accelerates Despite Downward Pressure

Despite experiencing greater downward pressures from distressed sales and declining housing activity, home prices rose in November at their fastest monthly pace since summer, according to data from ""FNC, Inc.'s Residential Price Index"":http://fncrpi.com/default.aspx (RPI) for the month.

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FNC's national composite index, constructed using sales data on non-distressed properties, rose 0.5 percent in November, perking up from October's meager 0.3 percent gain. The two narrower 10- and 30-city composites also ticked up, rising 0.6 percent and 0.7 percent, respectively.

Year-over-year, the 100-city national composite increased 6.7 percent, while the 10- and 30-city indices were up 7.3 percent and 7.4 percent.

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The indices accelerated upward despite increases in foreclosure sales, which accounted for 16.8 percent of total home sales in November--up from October's 14.4 percent.

Among the country's largest metro areas, Seattle, Columbus, and Nashville posted the greatest price increases at 2.6 percent, 2.4 percent, and 2.1 percent, respectively. Performances were also strong in Riverside and Miami, FNC reported.

""Riverside in particular, is exhibiting rapid price accelerations in recent months, averaging 2.0 percent per month since May 2013, while the city's foreclosure sales continue to decline rapidly,"" the company said in a release. ""As of November, Riverside continues to have the highest foreclosure sales rate ... among California's largest metros.""

Home prices declined in four of the largest markets in November, down from six in October. Denver (-0.1 percent) made the list for the fourth straight month, with St. Louis (-0.4 percent), Baltimore (-0.9 percent), and Cleveland (-1.7 percent) joining the Mile High City.

Meanwhile, once-hot markets like San Diego and San Francisco continue to experience year-over-year price growth decelerations--""or likely a return to more sustainable growth,"" FNC reported.

""In contrast, home prices in Las Vegas, Phoenix, Riverside, Los Angeles, and several of the other hard-hit cities appear to be continuing in a strong recovery with year-over-year growth in double digits,"" the company said.