Home prices have hit their peak for the year, and the price increases seen earlier this year are slowing down, according to the latest data from Radar Logic.
The firm’s composite price index posted a 1.3 percent price increase from June 19 to July 19.
While the index is 3.8 percent higher than the same month last year, on a monthly basis, the increase is the smallest reported in the past three months.
The year-to-date increase in price is 13.1 percent, according to Radar Logic.
Based on years passed, Radar Logic suggests the gains are partially seasonal, and prices peaked for the year in July.
Seventeen of the metropolitan areas tracked in Radar Logic’s 25-market composite experienced year-over-year price increases in July.
Six experienced declines, and the remaining two were essentially unchanged over the year.
The largest year-over-year gains in prices were seen in Phoenix (20.2 percent); Minneapolis (12.7 percent); Detroit (10.4 percent); San Francisco (9.8 percent); and Washington D.C. (9.3 percent).
At the other end of the spectrum, Milwaukee, Wisconsin posted the greatest price decline year-over-year in July (-4.6 percent). Milwaukee was followed by Tampa, Florida (-4.4 percent); Charlotte, North Carolina (-3.2 percent); Chicago (-1.7 percent); and Miami (-1.7 percent).
Sales of foreclosed and REO properties reached their lowest level since January 2008, making up just 14.1 percent of all home sales.
The 17.4 percent decline in foreclosed and REO sales reported from June to July was the largest decline Radar Logic has recorded, having begun tracking the data in 2000.
Year-to-date foreclosed and REO sales have declined 39.9 percent.
Of these sales, which Radar Logic terms “Motivated sales,” the share of purchases by institutional investors continues to grow.
Four years ago, institutional investors accounted for about 3 percent of all Motivated sales. Today, they account for about 20 percent.
“We expect their share to continue to grow, as dozens of private equity firms and hedge funds are currently raising funds to pursue REO-to-rental investment strategies,” Radar Logic stated in its report.