FNC Price Index Rises in March for 13th Straight Month

The latest ""Residential Price Index"":http://fncrpi.com/default.aspx (RPI) from ""FNC, Inc."":http://www.fncinc.com/, shows home price gains continuing in March for the 13th straight month.

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The index, which is based on recorded sales of non-distressed properties in the nation's 100 largest metros, rose 0.4 percent month-over-month in March and 5.5 percent year-over-year.

On a quarterly basis, prices were up 0.7 percent from Q4 2012 and 5.7 percent from Q1 2012 as of the end of March, FNC reported.

As usual, growth was more accelerated in the smaller 30- and 10-MSA (metropolitan statistical area) components. The 30-MSA index grew 0.4 percent month-over-month, 0.9 percent quarter-over-quarter, and 6.7 percent year- [COLUMN_BREAK]

over-year. The 10-MSA index, meanwhile, improved 0.3 percent from February, 1.1 percent from Q4, and 7.4 percent from March 2012.

""Low interest rates continue to be a key driver of rising housing demand,"" FNC said. ""The market is also gaining momentum on signs of improved credit and more availability of leverage as mortgage lenders continue to experience rising profits. Foreclosure inventory continues to drop, with distressed sales contributing only 18 percent to total home sales, down from 24.5 percent a year ago.""

Twenty-two of the component markets tracked in the FNC 30-MSA composite index showed higher prices month-over-month in March. Phoenix topped the list, posting 2.0 percent monthly growth--slightly down from its average rate of 2.1 percent per month for the last 13 months. According to FNC, the city's foreclosure activities have dropped rapidly, with foreclosure sales accounting for 11.2 percent of home sales--the lowest since 2007.

At the bottom of the list were the usual laggards, including Chicago, Baltimore, St. Louis, Cleveland, and San Antonio, nearly all of which experienced negative monthly growth and relatively minor yearly improvements.

On a quarterly basis, home prices weakened between Q4 2012 and Q1 2013 in Chicago, Portland, Baltimore, Minneapolis, Houston, and St. Louis, ""despite that these market[s]all seem to have turned the corner toward recovery,"" FNC said.