The latest Residential Price Index from FNC Inc., released October 20th, indicates that U.S. residential home prices declined in August by a seasonally adjusted rate of 0.8 percent, despite high level of sales during the month.
A decline in a month-over-month trend of U.S residential homes, excluding the sale of foreclosed homes, which are normally sold at discounted prices, is apparent across all three RPI composites; the National, the 30-MSA, and the 10-MSA indices. Moreover, home prices are 4-5 percent below the national levels attained a year ago in August 2010.
Contrary to the national trend, Chicago displayed one of the largest metropolitan price increases in the nation, up 2.8 percent between July and August. Although Chicago’s year-to year price change is down by 6.3 percent, the year-to-date price change is up by 0.6 percent.
The decline upsets a four-month long seasonal uptrend, and tied in with a number of other indicators, forecasts continued weakness in the housing market in the coming months ahead