Black Knight: Against Sharpest Monthly Home Price Drop in 11 Years, Tappable Equity Backs Off Q2 Peak; Six of 10 Most Equity-Rich Markets Decline Through July
Black Knight, Inc. (NYSE: BKI) reports a significant shift in the housing market as July saw a 0.77% decline in home prices, marking the largest single-month drop since January 2011. Over 85% of the top 50 U.S. markets are off their peaks, with some experiencing declines of 4% or more. Tappable equity, which hit a record high of $11.5T in Q2, has decreased by 5% in two months, suggesting a possible decline in Q3. Despite these challenges, market leverage remains low at 42% of mortgage values, indicating some resilience against corrections.
- Market leverage at 42% of mortgaged homes' values, the lowest on record.
- 0.77% home price decline in July, the largest drop since January 2011.
- Over 85% of major U.S. markets have fallen from their peaks.
- 5% decline in tappable equity over the past two months.
- First anticipated quarterly decline in tappable equity since 2019.
- Annual home price growth shifted from deceleration to decline in July as the median home price fell
0.77% from June – the largest single-month decline since January 2011 - More than
85% of the 50 largest U.S. markets are at least marginally off their peaks through July, with home prices down by >1% in a third, and more than one in 10 seeing prices fall by4% or more - Tappable equity – the amount a homeowner can borrow against while keeping a
20% equity stake – hit its 10th consecutive record high in Q2 2022 at$11 .5T but appears to have peaked in May of this year - Escalating declines in June and July have total tappable equity down
5% over the past two months, suggesting a sizeable reduction is likely in Q3, which would mark the first quarterly decline in three years - In some markets, equity pullbacks have quickly become fairly significant, with the five most equity-rich West Coast markets shedding 10
-20% of previously available tappable equity from April through July - The impact of home price declines is twice as pronounced on tappable equity levels; a
5% decline in home values nationally would equate to a10% decline in tappable equity, and so on. - Overall, the market is on strong footing to weather a correction; total market leverage as of Q2 – including both first and second liens – was just
42% of mortgaged homes' values, the lowest on record
JACKSONVILLE, Fla., Sept. 7, 2022 /PRNewswire/ -- Today, the Data & Analytics division of Black Knight, Inc. (NYSE: BKI) released its latest Mortgage Monitor Report, based upon the company's industry-leading mortgage, real estate and public records datasets. The most recent data from the Black Knight Home Price Index shows the deceleration in home price growth on which the company has been reporting in recent months has shifted to actual decline. As Black Knight Data & Analytics President Ben Graboske explains, July's month-over-month decline represents the first such contraction in nearly three years.
"After 31 consecutive months of growth, home prices pulled back by
"Similarly, while mortgage-holders' tappable equity had grown
The month's report looks again at the inventory side of the housing supply/demand equation. Falling housing demand continued to allow inventory levels to build for the fifth month in a row, with July marking the third consecutive record-breaking increase. Despite a 128K rise in active listings, inventories remain 622K (
Much more localized information on these and other topics can be found in this month's Mortgage Monitor.
The Data & Analytics division of Black Knight manages the nation's leading repository of loan-level residential mortgage data and performance information covering the majority of the overall market, including tens of millions of loans across the spectrum of credit products and more than 160 million historical records. The combined insight of the Black Knight HPI and Collateral Analytics' home price and real estate data provides one of the most complete, accurate and timely measures of home prices available, covering
Black Knight's research experts carefully analyze this data to produce a summary supplemented by dozens of charts and graphs that reflect trend and point-in-time observations for the monthly Mortgage Monitor Report. To review the full report, visit: https://www.blackknightinc.com/data-reports/
Black Knight, Inc. (NYSE:BKI) is an award-winning software, data and analytics company that drives innovation in the mortgage lending and servicing and real estate industries, as well as the capital and secondary markets. Businesses leverage our robust, integrated solutions across the entire homeownership life cycle to help retain existing customers, gain new customers, mitigate risk and operate more effectively.
Our clients rely on our proven, comprehensive, scalable products and our unwavering commitment to delivering superior client support to achieve their strategic goals and better serving their customers. For more information on Black Knight, please visit www.blackknightinc.com/.
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SOURCE Black Knight, Inc.
FAQ
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