Home Price Increases Slow; Prices 11 percent below Peak

Homernprice increases wound down further in August. rnThe Home Price Index released by Black Knight Financial Services todayrnrose a negligible 0.1 percent from July to August and was 4.9 percent higherrnthan a year earlier.  In August of 2013 thernyear-over-year price gain was 9 percent and as recently as April increases werernrunning 6.4 percent on an annual basis.  </p

Therncompany said that nearly half of the 20 largest states actually saw pricerndeclines from July to August although eight of the largest metro areas hit newrnpeak price levels.  Black Knight’s HomernPrice Index for the U.S. was $241,000 in August, the same number as inrnJuly.  The HPI registered $230,000 inrnAugust 2013. </p

Pricesrnin the U.S. are now 10.1 percent below the peak level of $268,000 establishedrnin June 2006.   The metropolitan areasrnwith new price peaks established in August were Austin, Dallas, Denver,rnHonolulu, Houston, Nashville, San Antonio and San Jose. </p

The states with the largest pricernincreases were New York, Michigan, and Nevada where prices rose 0.6 percentrnfrom July to August, and South Carolina and Texas, each with increases of 0.5rnpercent.  At the other end of the scalernwere Wisconsin, Missouri, and Virginia where prices declined by 0.5 percent,rnfollowed by Georgia and the District of Columbia, down 0.4 percent.  Colorado and Texas again established new highrnpoints for their home prices, something each has done routinely for over arnyear.</p

Among the metropolitan areas that hadrnincreases greater than the national average were Detroit and The Villages inrnFlorida, both up 0.9 percent, Myrtle Beach and Reno saw increases of 0.8rnpercent, and Naples Florida and Houston, were 0.7 percent higher.  It was the second straight month in which beleagueredrnDetroit led the nation in price gains.  OceanrnCity and Atlantic City, New Jersey, Torrington, Connecticut, Milwaukee, and StrnLouis all had 0.7 percent declines from the previous month.</p

Black Knight’s HPI represents a repeatrnsales analysis of home prices as of their transaction dates for more thanrn18,500 U.S. Zip codes.  The indexrnrepresents the price of non-distressed sales by taking into account pricerndiscounts for lender owned real estate (REO) and short sales.</p

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