U.S. home prices increased 0.4% in December compared with November and increased 6.2% compared with December 2014, according to FNC’s residential price index.
On a quarterly basis, home prices increased 0.2% during the fourth quarter.
“Riding on a robust pace of home sales and new housing starts, home prices in 2015 finished strong with year-over-year growth at a 15-month high since October 2014,” says Yanling Mayer, housing economist and director of research for FNC, in a release. “If judging on a seasonal basis, December’s month-over-month increase outpaced the same period of the past three years.
“Although stock market jitters from tumbling oil prices and concerns of the Chinese economy could overshadow the underlying strength of the U.S. economy, home buyers will continue to benefit from record low interest rates, rising mortgage credit availability, and the growing strength of the job market,” Mayer adds. “Building on the ongoing momentum, 2016 is likely to continue to see solid price growth.”
Foreclosure sales represented about 10.9% of all existing homes sales in December, down from 12.5% a year ago to reach the lowest level since December 2007, FNC’s research shows.
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