June Home Prices Cooled at Record Pace
Home price increases dropped 2 percentage points – but even at that rate, it would still take six months to return to any historically “normal” monthly increases.
NEW YORK – Black Knight reported that rising mortgage rates and inflation in the broader economy caused a cooldown in home prices in June amid declining demand. The yearly rate of price appreciation dropped from 19.3% to 17.3%.
“The slowdown was broad-based among the top 50 markets at the metro level, with some areas experiencing even more pronounced cooling,” says Black Knight Data & Analytics President Ben Graboske. “In fact, 25% of major U.S. markets saw growth slow by three percentage points in June, with four decelerating by four or more points in that month alone.”
However, Graboske added that the market would have to see six more months of similar deceleration for price growth to revert to long-run averages.
While Black Knight found that the cooling prices are concurrent with a sharp rise in home inventory, the inventory of for-sale homes remains 54% lower than 2017-2019 levels.
“With a national shortage of more than 700,000 listings, it would take more than a year of such record increases for inventory levels to fully normalize,” Graboske says.
Source: CNBC (08/01/22) Olick, Diana
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