prices-for-home-purchases-fall-in-june,-reports-black-knight

Black Knight’s data and analytics division released its latest Mortgage Monitor report, reporting that June saw the biggest slowdown in home price growth on record, down 2 percentage points.

According to Black Knight Data & Analytics President Ben Graboske, the June slowdown of 17 .3% at 17.3% annual home price growth coincided with the largest single-month gain in homes listed for sale in 12 years.

“The setback in growth of house prices in June marked the strongest month of slowdown on record since at least the early 2000s, and it wasn’t even close,” Graboske said. “According to the Black Knight HPI, the annual rate of appreciation fell almost two full points in June. For context, during the 2006 recession, the strongest single-month slowdown was 1.19 percentage points, more or less what we saw last month, and June exceeded that number, by 66%”.

According to the report, the slowdown was generalized between the 50 main markets at the metropolitan level, with some areas experiencing an even more pronounced cooling. In fact, 25% of major US markets experienced a 3 percentage point growth slowdown in June, and 4 of them slowed by 4 or more points in June alone.

Black Knight notes that six more months of this kind of slowdown are needed for price growth to return to long-term averages. term. With interest rate shocks taking about five months to be fully reflected in traditional house price indices, we likely won’t see the full effect of recent rate increases yet, with the potential for a slowdown yet. higher in coming months.

The report found that some metropolitan area markets are returning to pre-pandemic inventory levels faster than the national rate, and price gains are softening or even show early signs of reversing course in response.

Digging deeper into home price data June, the report finds that the 5 entities that fell the most were:

– San José, has fallen by 5.1% with a price decrease of -$75,000 dollars only in the last two months, which marks the steepest pullback from the rec highs among the 50 main US markets

– Seattle, with a decrease of 3.8% in the housing prices during the same period, with a reduction of more than -$30,000
– San Francisco, with -2.8% and – $35,000
– San Diego, with -2% and – $19,500, and
– Denver, with -1.4% and – $8,700

For more details of the report, enter here .

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By Scribe