Takeaways:
- The average U.S. home price increased by 3.5 percent in the second quarter of 2015 when compared to the first quarter.
- During the second quarter, 12 metro areas experienced overall price growth of 4 percent or more.
- Only one market out of the 30 analyzed by FNC witnessed quarter-over-quarter depreciation: Baltimore.
Spanning April to June, the average U.S. home price increased by 3.5 percent when compared to the first quarter of this year.
According to the latest FNC Residential Price Index (RPI), the second quarter of this year marks the strongest seasonal price momentum since spring 2005.
“It outpaced the same period in 2013 when the housing market was rebounding very strongly,” said Bob Dorsey, FNC’s chief data and analytics officer.
During the second quarter, 12 metro areas experienced overall price growth of 4 percent or more:
- Portland, Oregon (7.5 percent)
- Chicago (6 percent)
- Sacramento (5 percent)
- Miami (4.7 percent)
- Charlotte (4.7 percent)
Another grouping of metros experienced growth ranging from 4 to 4.4 percent — Cleveland, Orlando, Dallas, San Francisco, Atlanta, Minneapolis and Las Vegas.
Only one market out of the 30 analyzed by FNC witnessed quarter-over-quarter depreciation: Baltimore. The market saw a 1.4 decrease in overall home prices during the period.
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On a year-over-year basis, six markets reported price growth of more than 10 percent:
- Dallas (14.7 percent)
- Las Vegas (14.3 percent)
- Orlando (13.4 percent)
- Portland (11.3 percent)
- Atlanta (10.7 percent)
- Riverside, California (10.1 percent)
Los Angeles, San Diego, Miami, Chicago and Seattle also saw year-over-year price growth between 8.7 and 9.6 percent.
FNC attributes the overall rise in home prices to increased sales activity and steady economic growth, but cautions the momentum cannot sustain without a strong labor market.
Also aiding home prices is the distressed market, which continues to account for a declining number of existing sales.
FNC also reported that in June, average time on market (TOM) was 89 days compared with 97 days in May.
The average asking-price discount in June was 2.8 percent, down from 3.2 percent in May.
“Preliminary July estimates indicate the average TOM and asking-price discount continue to decline,” FNC stated.
