Talking about US home price report from FNC and house prices in Upstate South Carolina. Plus several reports about foreclosures from RadarLogic and RealtyTrac…
FNC Reports Says Home Prices Rose for 4th Consecutive Month
A little behind reporting this good news from FNC:
Home prices rose again in June for the fourth consecutive month. Nationwide, June home prices – based on recorded sales of non-distressed properties (existing and new homes) in the 100 largest metropolitan areas – were up at a seasonally unadjusted rate of 1.1% from the previous month. On a quarterly basis, home prices rose 2.7% during the second quarter, the largest increase in six years. Year to date, home prices were up nearly 4.0% since January.
Of course, they are talking about home prices across the entire US. And they are behind since they are reporting house prices for the month of June 2012. If we look locally at home prices in Upstate South Carolina:
Let’s hope the numbers for August show us some real improvements compared to 2011. And of course to June & July. You can read more about home prices and other market indicators by checking out the Upstate South Carolina Real Estate Market Reports
RadarLogic Says Fewer Distressed Homes Sold
RadarLogic said in their Monthly Housing Market Report for June 2012 that the number of homes sold at foreclosure auctions and REO sales fell to the lowest percentage sales since 2008. Which sounds great but RadarLogic is also reporting that if they exclude distressed homes that home price appreciation is “marginal”.
In other words, if you take all the foreclosures and short sales out, home prices are NOT going up like some of the other reports we have heard lately. Michael Feder, Radar Logic’s CEO said:
The absence of real price appreciation when distressed sales are excluded from the analysis suggests that traditional home buyers remain hesitant to return to the market in strength. We continue to be concerned that this negative psychology could be the biggest risk threatening any real recovery in housing values. If it continues, the resultant imbalance between supply and demand could trigger another decline in home values.
Bummer. I hope RadarLogic is wrong. Which they might be considering how many reports about home prices increasing we have heard lately…
RealtyTrac Says Low Supply of Foreclosures Pushes Prices Higher
RealtyTrac just said in their latest Foreclosure Market Report that the lower number of foreclosed homes for sale is making foreclosed home prices increase. They also are reporting that for the first time in 2 years the average foreclosure sales price increased when compared to the same time period one year earlier.
Foreclosed home prices in the 2nd quarter of 2012 increased 6% from the previous quarter and is up 7% from the 2nd quarter of 2011. This is the first annual increase in average foreclosed home price since the 2nd quarter of 2010 and the biggest annual increase since the 4th quarter of 2006.
Foreclosures accounted for 23% of all home sales in the 2nd quarter of 2012. This is up 19% from last year and 22% from the first quarter of 2012. But that is if we are looking at foreclosures as a percentage of total home sales. The number of foreclosures sold in the 2nd quarter of 2012 decreased 12% from the previous quarter and is down 22% compared to the 2nd quarter of 2011.
So fewer foreclosures and the ones that are available are selling for more. Something for buyers to consider if they are dragging their feet thinking all the reports of home prices increasing is just wishful thinking…