Dennis Norman
Radarlogic Housing Market Report Shows First November-December Increase in Home Prices Since 2004- Also shows a 44 percent year-over-year increase in housing transactions in December
Finally, some good news on the home front…literally. According to the Housing Market Report that was just released by Radarlogic, their RPX Composite Price, which tracks home prices in 25 major metropolitan areas, increased from November to December, the first time for an increase in the price index during the month of December since 2004.
Another positive piece of news is that the number of housing transactions for December increased in all 25 metroplitan areas covered by the report relative to the prior year.
Other highlights from the RadarLogic Housing Market report for December are:
- The number of home sales in the 25 metropolitan areas covered by the report increased in December 44 percent from the year before
- Even though year over year home sales showed an increase, December’s home sales were 11 percent less than November making it the first significant month-over month decline since January 2009.
- Sales of foreclosed homes increased as a percentage of total sales during early December. This reversed the trend during the prior two months, when sales of distressed homes decreased as a share of total transactions. Foreclosed home sales increased from 22 percent of total sales to 24 percent in the first half of December.
- Home sale prices on foreclosures were 37 to 38 percent less than other home sales during December.
- Notwithstanding the stability in aggregate home prices during December, there was considerable regional variation in price dynamics over this period. On a month-over-month basis, the composite price for housing markets in the Northeast increased by 2 percent, while the Midwest composite decreased by 5 percent. The West composite price remained flat month over month, as price increases in San Francisco, Denver and, surprisingly, Las Vegas were offset by price declines in the other western cities. The composite price for the South also remained essentially flat month over month.
“Most signs point to a return to more normal activity in housing markets,” said Michael Feder, President and CEO of Radar Logic. “While we are still exposed to inventory swings and financing constraints, a continued recovery this spring looks likely.”
Recovery in spring? Hmm….let’s hope….time will tell…
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