August 7th, 2012
A report from the data firm FNC showed that home prices have continued an upward trend in the United States, making the highest seasonal gain in five years.
When examining the 100 largest metropolitan statistical areas (MSAs) nationwide, home prices rose 0.8 percent in May when compared to April, according to FNC's Residential Price Index, which trails the market by several weeks. Both demand and a lack of inventory have fueled this improvement in home prices, which has now continued for the past few months.
Home prices in March, April and May experienced a 2.4 percent gain, which was the largest improvement in a rolling quarter in five years, according to the index. This period experienced a 3.4 percent price gain in the 30 top MSAs examined in the report, while the top-10 MSAs had nearly the same improvement.
While prices were still down from a year ago, according to the firm, the 1.4 percent annual drop was the smallest since 2007.
Continued pricing gains may make the market more attractive for those participating in corporate relocation plans, but it is important for transferees to speak with a mortgage consultant before going forward with the homebuying process so they know what assistance may be available.