Black Knight: Affordability improves for first time in 16 months
After months of declines, home affordability finally improved in July, according to the latest data from Black Knight.
The national affordability landscape improved in July after 16 straight months of declines, according to a first look at the Black Knight Home Price index, which will be released later this month.
The improved affordability is due to falling interest rates, which worked against rising home prices.
But while home prices increased, the rate of increase showed, Black Knight data showed. Home prices increased by 0.34% monthly in July, and rose 3.9% from July 2018.
Over the last 16 months, the annual home price growth peaked at 6.75% in February 2018.
July’s home price increase marked the 87th consecutive month of annual home price growth. In fact, July’s HPI shows year-over-year home price growth in all 50 states as well as 99 of the 100 largest U.S. housing markets.
The chart below shows the rate of home price appreciation has been steadily decreasing since the beginning of 2018.
Click to Enlarge
(Source: Black Knight)
San Jose, the most expensive market in the country, was the lone exception; home prices there were down 6.4% year-over-year.
Another report released Wednesday by CoreLogic showed home prices in the San Francisco Bay area fell 4.7% month-over-month in July and the total number of homes sold dropped to its lowest point for a July since 2011.
A recent report from First American even showed that consumer house-buying power reached its highest point in two decades. According to First American’s data, unadjusted house prices sit 6.3% above the housing boom peak. Whereas consumer buying power ticked up 3.3% between May and June, increasing 12.2% year over year.
Published at Thu, 29 Aug 2019 22:06:38 +0000