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31 » VISIT US ONLINE @ DSNEWS.COM 'DISRUPTIVE WEATHER' CONTINUES TO SLOW HOME SALES Pending home sales ticked up slightly in January, just barely moving from December's two-year low, the National Association of Realtors (NAR) reported. e group's Pending Home Sales Index (PHSI), a forward-looking sales indicator based on contract signings, edged up 0.1 percent to an even 95 last month, a meager improvement from December's upwardly revised reading of 94.9. Compared to January 2013, pending sales were down 9.0 percent. "Ongoing disruptive weather patterns in much of the U.S. inhibited home shopping," said NAR chief economist Lawrence Yun. "Limited inventory also is playing a role, especially in the West, while credit remains tight and affordability isn't as favorable as it was a year ago." While it was hardly a banner report, January's gain at least turned around the prior month's originally reported 8.7 percent decline to 92.4, the lowest reading since November 2011. While NAR projects a weak first quarter for existing-home sales—already evident in January's lackluster report—the pace "should pick up in the middle part of the year," leading to a full-year total of just more than 5.0 million sales. Pending sales rose in the Northeast by 2.3 to an index value of 79.0, NAR reported, though contracts were down 5.3 percent year-over-year. e South's index was also up, rising 3.5 percent to 111.2, down 5.5 percent from last year. ose gains were offset by a 2.5 percent decline in Midwest—to 92.9, down 9.3 percent annually—and a 4.8 percent fall in the West to 84.2, a 17.5 percent year-over-year decrease. HOME PRICES RISE IN 38 STATES IN Q4 Home prices rose 7.7 percent year-over- year in the fourth quarter, while prices for other goods and services ticked up 0.7 percent, according to the Federal Housing Finance Agency (FHFA) House Price Index, which calculates home prices among mortgages held by Fannie Mae and Freddie Mac. A total of 38 states reported rising prices in the fourth quarter of the year, a significant showing but fewer than the 48 from the previous quarter, according to the FHFA. On a quarterly basis, prices rose 1.2 percent, marking the tenth consecutive quarter of price increases, according to the FHFA. On a seasonally-adjusted monthly basis, prices rose 0.8 percent in December, according to the agency's index. e price appreciation that took place in the fourth quarter was "considerable, but more modest than in recent periods," according to Andrew Leventis, principal economist for the FHFA. "It is too early to know whether the lower quarterly growth rate represents the beginning of more normalized price appreciation patterns or a more significant slowdown," Leventis added. Prices rose most over the year in Nevada (24.32 percent), California (19.50 percent), Arizona (15.22 percent), Oregon (12.87 percent), and Florida (12.63 percent), according to FHFA's seasonally-adjusted, purchase-only index. e five states with the lowest home price appreciation over the year were West Virginia (-1.78 percent), Delaware (0.12 percent), Arkansas (0.50 percent), Connecticut (1.15 percent), and Rhode Island (1.16 percent). Among the 100 metros with the highest populations in the United States, those with the highest price appreciation over the year were largely based in the West, according to FHFA's all-transaction index, which includes data from both purchases and refinances. In fact, 15 of top 20 are located in California, according to the FHFA. Modesto, California, topped the list with prices rising 28.50 percent over the year. Other states with metros on the top 20 list were Nevada, Oregon, Arizona, and Florida. Many of the metros ranking lowest for price appreciation over the year are located in the Midwest and the South. Rockford, Illinois experienced the greatest price depreciation over the year with a 6.46 percent drop, according to the FHFA. Based on the nine Census divisions, prices rose most over the year ending in December in the Pacific region, where they jumped 14.9 percent. e Mountain division posted the second-greatest increase with a 12.6 percent rise in prices, according to the FHFA purchase- only index. Tami Rund TRund@AssetVal.com 970-256-6614 www.AssetVal.com Call Us Today! VALU-ations Providing reliable, responsive, scalable and fully customizable valuation solutions since 1995 Our Products Include: Residential and Commercial Broker Price Opinions Inspections Rental Data Reports Automated Valuation Models Valuation Solutions TM

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