Residential Price Index, US Houses: October 2015


In addition to Case-Shiller, and CoreLogic, there is also FNC, Zillow, and sev- eral other house price indexes.

FNC have released their October 2015 index data, reporting that their Residen- tial Price IndexTM (RPI) indicates that US residential property values decreased 0.1 per cent from September to October (Composite 100 index, not seasonally ad- justed).

The 10 city MSA decreased 0.1 per cent (NSA), the 20-MSA RPI increased 0.1 per cent, and the 30-MSA RPI increased 0.1 per cent in October. These indexes are for non-distressed home sales (excluding foreclosure auction sales, REO sales, and short sales).

FNC Index: Home prices slipped 0.1 per cent after a nine-month run

The latest FNC Residential Price IndexTM (RPI) indicates that U.S. home prices pulled back in October, ending a nine-month run of increases buoyed by low mortgages rates and rising credits. Nationwide, home prices fell 0.1% between September and October, led by declines in some of the country’s largest housing markets. October’s year-over-year growth remains unchanged from the prior month at a solid 5.9 per cent.

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“In a relatively stable market like today’s, it is normal that home prices retreat to flat or negative growth terri- tory as home sales subside entering the fall and winter months,” said Yanling Mayer, FNC’s housing economist and Director of Research. “On the upside, low interest rates and the leverage provided by loans under affordable housing programs help maintain affordability and partly offset the impact on affordability from months of rapidly rising prices. With a much anticipated policy rate increase to affirm the strength of the US economy, we will likely be looking at a milder seasonal slowdown and possibly a sooner return of market rebound in 2016,” continued Mayer.

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The year-over-year (YoY) change was the same in October as in September. The index is still down 14.6 per cent from the peak in 2006 (not inflation adjusted).

This graph shows the year-over-year change based on the FNC index (four composites) through October 2015. The FNC indexes are hedonic price indexes using a blend of sold homes and real-time appraisals.

Most of the other indexes are also showing the year-over-year change in the mid single digit range. For example, Case-Shiller was up 4.9 per cent in September, CoreLogic was up 6.8 per cent in October.