Black Knight: Home Prices Down Again in August With Average Home Nationally Now 2% Off June Peak; Inventory Growth Stalls as Sellers Step Back
The latest Black Knight Home Price Index report indicates a continued decline in median home prices, with a 0.98% drop in August, following a 1.05% decline in July. These decreases represent the largest monthly declines since January 2009, with home prices now 2% below their peak in June. Inventory growth has stalled, as sellers hesitate in the current market. Consequently, the national inventory remains 44% below pre-pandemic levels, exacerbated by falling demand and rising mortgage rates, which pushed home affordability to its lowest in 38 years.
- The report highlights a significant historical context, marking the largest price declines since January 2009, indicating potential market corrections.
- Median home prices fell 2% from June, with consecutive monthly declines recorded.
- Inventory growth has stalled, suggesting sellers are retreating from the market.
- The national inventory deficit is still 44% below pre-pandemic levels, signaling supply challenges.
- Home affordability has worsened, with 38.2% of median household income required for mortgage payments, the highest since December 1984.
- According to the Black Knight Home Price Index (HPI), median home prices fell
0.98% in August, only marginally better than July's upwardly revised1.05% monthly decline - July and August 2022 mark the largest single-month price declines seen since January 2009 and rank among the eight largest on record
- The monthly rate of home price decline is now rivaling that seen during the Great Recession – the question is how long it will continue to do so, and how far off peaks prices will fall
- After rising sharply from May through July, for-sale inventory levels stalled in August, growing at just 1/10th the rate of recent months, as sellers appeared to take a step back from the market
- The national inventory deficit held relatively steady at -
44% , with the market remaining more than 600K listings short as compared to pre-pandemic levels - Sellers are likely being deterred by both falling demand and prices, along with a growing disincentive to give up historically low interest rate mortgages in a sharply rising rate environment
JACKSONVILLE, Fla., Oct. 3, 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. With all eyes on the housing market, the most recent data from the Black Knight Home Price Index showed that home prices declined for a second consecutive month in August. As Black Knight Data & Analytics President Ben Graboske explains, July and August's month-over-month declines mark the sharpest contractions seen in more than 13 years.
"The Black Knight HPI for August marked the second consecutive month that prices pulled back at the national level, with the median home price now
"Historically low inventory – along with record low interest rates – was one of the key drivers behind U.S. home prices seeing essentially a decade's worth of appreciation in just two-and-a-half years. Inventory levels had been improving though, with our Collateral Analytics data showing both overall inventory and months of supply rising sharply from May through July. We'd climbed from 1.7 months of for-sale inventory to 3.1 months before improvement stalled in August as sellers appeared to take a step back from the market. Inventory grew at just one-tenth the rate it had been, with the market still some 600K listings short of 'normal,' pre-pandemic levels. It will be worth watching inventory levels closely in coming months for any sign of a shift in seller sentiment. Right now, prospective sellers are not only coming to grips with falling demand and declining prices due to sharply higher interest rates, but they also have a growing disincentive to give up their own historically low-rate mortgages in this environment. Some may be waiting out the market to see if demand – and prices – return in the spring."
Though prices have pulled back from recent historic peaks, housing remains historically unaffordable. After improving slightly in July and early August, surging 30-year rates have pushed home affordability to its worst point in 38 years, easily surpassing June's – at the time – record-setting
Much more 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/.
For more information:
Michelle Kersch | Mitch Cohen |
904.854.5043 | 704.890.8158 |
View original content to download multimedia:https://www.prnewswire.com/news-releases/black-knight-home-prices-down-again-in-august-with-average-home-nationally-now-2-off-june-peak-inventory-growth-stalls-as-sellers-step-back-301638246.html
SOURCE Black Knight, Inc.
FAQ
What does the latest Black Knight report say about home prices (BKI) in August 2022?
How much have home prices decreased since June 2022 (BKI)?
What are the reasons for the decline in home prices in August 2022 (BKI)?
What is the current state of home inventory as reported by Black Knight (BKI)?