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Asking Prices Increase, Discounts on the Decline

Asking prices on homes improved on a yearly basis for the seventh straight month in November, according to the latest report (RPI) from FNC, Inc.

The median home asking price in November was $190,000, mostly flat from October. However, that figure stands 6.1 percent above its year-ago level. November’s year-over-year increase was the fourth largest one this year and the biggest gain since July (which saw a 10.6 percent bump in prices compared to a year ago).

As of November, prices are up 8.6 percent year-to-date.

The report also shows a steady improvement in liquidity conditions throughout 2012—meaning the gap between asking prices and selling prices is closing, even as prices rise. The average home sale in October closed at 6.6 percent below the asking price, a year-over-year improvement from 9.7 percent. The last time asking price discounts were so low was in August 2007, according to FNC.

What’s more, median annualized home appreciation at re-sale (a measure of appreciation during the holding period) continues to hold near zero—that is, breaking even—and is trending toward positive growth for the first time since 2008. So far, the 2012 average for holding-period price appreciation is -0.7 percent, the highest it’s been in four years.

The median time on market for a home sold in October was 147 days, unchanged on both a monthly and yearly basis. However, the first eight months of 2012 all showed declines in days on market, meaning sales pace is picking up.


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