Black Knight: February Home Prices See First Monthly Rise After Seven Straight Declines as Sales Pick Up on Lower Rates While Inventory Shrinks Even Further
In February, Black Knight's data shows a rebound in home prices after seven months of decline, with a 0.16% increase, the first positive monthly change since May 2022. The uptick was fueled by lower interest rates and reduced inventory, falling 47% below pre-pandemic levels. Despite this, annual home price growth is projected to fall below 0% by April, impacted by ongoing affordability pressures. Overall, tappable equity remains robust at $9.3 trillion, although it has decreased from its 2022 peak. This month, 39 of the 50 largest markets reported price increases, reversing the trend seen in November 2022.
- 0.16% monthly increase in home prices, first gain in 8 months.
- 39 of 50 U.S. markets saw price increases, indicating a broad recovery.
- $9.3T in tappable equity available for homeowners.
- Annual home price growth fell below 2%, first time since 2012.
- Inventory levels down 47% from pre-pandemic, worsening market conditions.
- Sales remain 18% below 2019 pre-pandemic averages.
- Home prices rose in February on both non-adjusted and seasonally adjusted bases, driven by a combination of modestly easing affordability in January and early February along with worsening inventory levels
- Sales were up in the month on interest rate dips according to Collateral Analytics data from Black Knight, but remained
18% below 2019 pre-pandemic averages as affordability pressures continue to weigh on demand - Inventory levels continued to deteriorate, with the seasonally adjusted number of homes available for sale falling for the fifth consecutive month to their lowest level since May of last year
- Adjusted for seasonality, prices were up
0.16% in February – the strongest single-month gain since May 2022 – while at the same time, at1.94% , annual home price growth fell below2% for the first time since 2012 - The national annual growth rate is expected to fall below
0% by April, but this could be a temporary milestone should inventory challenges persist and interest rates ease - Home prices are now -
2.6% off their 2022 seasonally adjusted peak nationally, a marginal strengthening from -2.7% in January - More noteworthy, 39 of the 50 largest U.S. markets saw home prices rise on an adjusted basis in February; that's in sharp contrast to this past November, when prices were falling in 48 of 50 markets
- February's price strengthening also helped shore up homeowner tappable equity levels, which are now
$1 .6T off peak (-15% ); collectively, homeowners with mortgages still have$9 .3T in tappable equity available - Though down from
$210 K early last year, the average mortgage holder still has$178 K in tappable equity to borrow against while retaining a healthy20% equity stake in the home
JACKSONVILLE, Fla., April 3, 2023 /PRNewswire/ -- Today, the Data & Analytics division of Black Knight, Inc. (NYSE:BKI) released its latest Mortgage Monitor Report, based on the company's industry-leading mortgage, real estate and public records data sets. After seeing home prices pull back for seven consecutive months at the national level, and likely spurred by homebuyers reacting to a dip in 30-year interest rates, the Black Knight Home Price Index showed something of a rebound occurring in many areas of the country in February. As Black Knight Vice President of Enterprise Research Andy Walden explains, a widespread shift occurred at the geographic level, with prices rising for the month in
"February's national increase in home prices – up
"The unfortunate reality is that the scarce supply of inventory that's the source of so much market gridlock isn't getting any better. In fact, seasonally adjusted inventory levels continued to deteriorate in February, marking not only the fifth straight month of such declines, but also the largest inventory deficit we've seen since May of last year, with more than
This month's report also surveys the equity landscape to find that February's price gains have also helped to shore up what had been falling homeowner equity levels. At
Much more information on these and other topics can be found in this month's Mortgage Monitor.
About the 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/
About Black Knight
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.
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