Home Price Growth Levels to Moderate Pace in May

""FNC's Residential Price Index"":http://fncrpi.com/default.aspx (RPI) continued to show gains in May, though the company noted the pace of growth has started to slow to a more sustainable level.

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According to FNC, the index climbed 0.5 percent in May, striking a balance between April's 0.7 percent growth and March's 0.3 percent improvement. From December through May, FNC reported an average monthly price growth of 0.4 percent, which annual appreciation rates (4.0 percent in May compared to May 2012) similarly leveling out.

On a smaller scale, the 30-metropolitan statistical area (MSA) index recorded a 0.4 percent monthly increase and a 4.7 percent yearly increase. The 10-MSA composite also rose 0.4 percent month-over-month and showed a slightly more modest 4.6 percent annual gain.

The median sales-to-list price ratio was 96.1 in May, up from 95.4 the prior month and 93.2 the prior year.

To better gauge underlying home values, the index excludes prices of sold foreclosures, which are often sold at large discounts that can drag down price averages. Foreclosure sales rapidly declined in May, contributing only 13.9 percent to total home sales--down from 16.2 percent in April and 19.6 percent in May 2012.

The majority of markets tracked in the 30-MSA index showed price improvements in May, with Nashville and Phoenix leading at 2.0 percent each and Las Vegas following close behind at 1.8 percent. As of May, Phoenix has reported monthly gains of at least 2.0 percent for 16 straight months.

At the other end of the spectrum, home prices were either flat or on the decline in San Antonio, Houston, Chicago, Detroit, and Washington, D.C., where foreclosure sales still account for a significant portion of existing-home sales.