Home Price Gains Decelerating

Home prices continued to increase in June but thernHome Price Index (HPI) released by Black Knight Financial Services showedrncontinued slowing in the rate of price growth. rnThe national HPI rose by 0.8 percent to $241,000.  While month-over-month increases have variedrnwidely – dipping as low at 0.1 percent in December 2013 only to hit 0.7 percentrna couple of months later, the annual rate of increase has been steadilyrnmoderating for months.  </p

In September of last year the HPI was 9 percentrnhigher than a year earlier, by April the annual increase was 6.4 percent.   Today Black Knight said the year-over-yearrnincrease in June was 5.5 percent.   Forrnthe year-to-date the increase in the HPI has been 4.3 percent. Prices nationallyrnare now 10.4 percent below the peak of $268,000 reached in June 2006.  </p

The 20 largest states and 40 largest metropolitanrnareas all had month-over-month price gains with largest in Nevada.  Reno had the largest gain among all metropolitanrnareas, 1.9 percent.  Colorado and Texasrncontinued their almost monthly pattern of establishing new price peaks as didrntheir major cities Denver, Austin, Dallas, Houston, and San Antonio.  </p

Besides Nevada where prices rose 1.4 percent fromrnJune, other states with large increases were Michigan (1.3 percent) and RhodernIsland, Massachusetts, Florida, and Colorado each with gains of 1.2rnpercent.  The lowest rates of increasernwere in North Carolina and Washington, DC (+0.1 percent) Virginia and Arkansasrn(+0.2 percent), and Maryland, Missouri and Arizona (+0.3)</p

While Reno’s price gains topped all metros it wasrnfollowed by New Haven and Greely, Colorado at 1.5 percent and Norwich, Detroit,rnand Vallejo, California all at 1.4 percent. rnAt the bottom were four cities in North Carolina where prices declinedrnfrom the previous month, Greensboro (-0.4 percent), Durham, Wilmington, andrnWinston (-0.2 percent). </p

The Black Knight HPI combines the company’srnproperty and loan-level databasesrnto producerna repeat sales analysisrnof homernprices as of their transaction dates every month for each of more than 18,500 U.S.rnZIP codes. The Black Knight HPI represents the price of non-distressedrnsales by taking intornaccount price discounts for REO andrnshort sales.

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