Friday, December 28, 2012

Price Gains Driven by Composition Changes

Price Gains Driven by Composition Changes

 Not Appreciation, After tracking home price trends in 25 metropolitan statistical areas (MSAs), Radar Logic found prices in October are now 6.9 percent higher than a year ago, according to the company’s RPX Composite price.

“However, this increase was driven by a change in the composition of sales rather than price appreciation,” Radar Logic stated in a recent report.
Upon closer scrutiny, the analytics company explained the price increase is mainly the result of a decrease in distressed sales, or “motivated sales,” and the actual price increase for “non-motivated sales” is much smaller than the overall yearly gain. Read more ...

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