FNC: Non-Distressed Prices Hit 20-Month High in August

Non-distressed home prices hit a 20-month high in August, according to the latest Residential Price Index (RPI) from ""FNC, Inc"":http://www.fncinc.com/.

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FNC's index, billed as ""the industry's first hedonic price index built on a comprehensive database,"" blends public records of residential sales prices with real-time appraisals of property and neighborhood attributes. In order to better gauge underlying home value, FNC excludes sales of foreclosed homes.

According to the RPI, home prices rose in August for the sixth consecutive month, increasing at a seasonally unadjusted rate of 0.3 percent from July.

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On a year-over-year basis, prices rose 1.5 percent from August 2011. Year-to-date, prices were up in August nearly 5.0 percent from January.

While August's month-to-month increase is modest compared to the months prior, it still represents a peak since early 2011. FNC said the increase is ""consistent with signs of strengthening market conditions that are led by rising existing-home sales and declining foreclosure activities.""

Though the index does not include foreclosed sales prices, FNC did note foreclosure sales in August were down 23 percent year-over-year to 17.4 percent.

The majority of markets tracked in FNC's 30-MSA (metropolitan statistical area) composite index showed continued price improvement in August, though the pace was more subdued. Western cities topped the month-to-month charts, with Los Angeles (3.1 percent), Phoenix (2.2 percent), and Sacramento (2.1 percent) showing the strongest improvements, followed by Detroit (1.7 percent) and Columbus (1.6 percent).

The top year-over-year performers were more varied, with Phoenix (13.3 percent), Detroit (7.6 percent), Denver (6.8 percent), Miami (6.7 percent), and San Francisco (3.9 percent) making up the top five in terms of improvement.