Home prices nationally fell slightly in October, marking the second consecutive month of declines after a long period of growth, according to the latest FNC Residential Price Index.
Overall prices in the 100 largest U.S. metro areas were down 0.1 percent between September and October, and the annual rate of appreciation nationwide was down to 5.7 percent in October, the report stated. This is a slower decline than in September, when the RPI dropped 0.3 percent, and which marked the first ebbing of national home prices in 30 months.
The decline is also happening amid the rising pace of existing-home sales and slow-but-steady improvement in the labor market.
Price depreciation was worst in Chicago, where prices dropped 2.2 percent in October. Chicago is, however, still well above its totals from a year ago, having improved 4.6 percent in 2014 compared to 2013. Other 2 percent drops occurred in Houston and Atlanta, both of which are also well above their 2013 figures (7 and 6.4 percent, respectively).
San Francisco, which posted one of the most noticeable drops in September (2.6 percent), was down another 1 percent in October. Three of city’s companions on the largest-declines list—New York, Cleveland, and Portland—also continued to lose as much as 1 percent in October.
Los Angeles, which suffered the largest month-to-month drop in September, 2.8 percent, gained in October, posting a 0.2 percent rise in home prices. Tampa and Columbus, two other cities on the downside in September, perked up in October as well, posting 1 percent and 0.5 percent increases, respectively.
Home prices in Las Vegas, Detroit, and Orlando showed the largest increases during October, up 3.3, 2.5, and 2.2 percent, respectively. At the cusp of 2015, Orlando, Riverside, and Las Vegas are emerging to be the top growth markets in 2014 by year-to-date changes, showing robust double-digit growth, at 18, 14.9, and 14.3 percent, respectively.
All major metros but Baltimore and St. Louis were doing better in October 2014 than October 2013, and only St. Louis is down in its year-to-date figures, by a little more than half a percent.