1. FNC: Residential Property Values increased 4.9% year-
over-year in December
The latest FNC Residential Price Index™ (RPI) shows continuing
momentum in the U.S. housing market with home prices rising to a two-
year high in December. Despite an unexpected deceleration in economic
growth, the ongoing housing recovery has maintained its pace with
steady gains in home prices, sending the index up 5.4% year to date.
Contributing to this pricing recovery:
• A stabilizing foreclosure market
 Foreclosures as a percentage of total home sales were
17.8% in December, down from 24.0% a year ago
Based on recorded sales of non-distressed properties (existing and new
homes) in the 100 largest metropolitan areas, the FNC 100-MSA
composite index, December home prices …
• Remained relatively unchanged from the previous month
• Were up 4.9% on a year-over-year basis from the same period in
2011
Half of the component markets tracked by the FNC 30-MSA composite
index show rising prices in December
• In Baltimore, Chicago, Houston, and San Antonio, prices were
relatively flat over the last 12 months (year-to-year change)
• Phoenix and Denver saw a double-digit growth, led by Phoenix at
nearly 23%
• The Chicago market continues to underperform other major
cities that make up the FNC 30-MSA composite index
 Home prices were up only 1.0% on a year-over-year basis,
compared to an average of 5.0% among the nation’s largest
cities

2. The graph below shows the year-over-year change for the FNC
Composite 10, 20, 30 and 100 indexes*.
The key is the indexes are now showing a year-over-year increase
indicating prices probably bottomed early in 2012.
*The FNC indexes are hedonic price indexes using a blend of sold homes and real-time appraisals.