Non-Distressed Sales Prices Up 0.3% in December

Home prices nationally rose at a seasonally unadjusted rate of 0.3 percent in December, continuing the pace slow, steady monthly gains that started in September, FNC reported in its latest Residential Price Index (RPI).

While slightly down from November’s 0.4 percent rate of growth, December’s price gains reflect greater stability in the non-distressed market, FNC says—especially when measured next to the larger price movement in the single-family housing market.

“Unlike overall price measures that include distressed sales (which recently have shown signs of weakening), home prices of normal sales have been rising at steady and sustainable levels—about 0.3-0.5 percent per month,” FNC said.

The narrower 30- and 10-city composites exhibited similar monthly changes at +0.4 percent and +0.5 percent, respectively.

While monthly increases were moderate, yearly gains were more dramatic. As of December, the RPI was up 8.7 percent over the year prior, indicating the fastest yearly growth since the recovery began in 2012, FNC says.

Breaking down the index of the nation’s top 30 markets, FNC recorded declines from November to December in more than a third, with Cincinnati leading the way at -1.5 percent. Topping the list in gains was Miami at +1.7 percent, followed by the usual high-ranking cities of Riverside and Phoenix at +1.6 percent and +1.5 percent, respectively.

On a yearly basis, only one city—St. Louis—posted depreciation. Positive growth was led by Sacramento, where prices surged 30.4 percent compared to December 2012. California’s capital was just one of several cities to see home prices end the year with the largest growth since the recovery’s beginning, according to the company.