Home prices are rising across the country after more than a year of slump, according to new report from data analytics firm Black Knight.
Nationally, house prices rose 0.67% month-on-month on a seasonally adjusted basis in June, according to the report. Meanwhile, annual home price gains rose 0.8% in June from just 0.2% in May.
Calling the June price rally an inflection point, Andy Walden, vice president of enterprise research at BlackKnight, said the rate of home price appreciation “has a lag, but has a significant impact on the annual rate of increase.” rice field.
Home prices rose month-over-month in more than 60% of the markets, with notable exceptions in Austin and San Antonio, where seasonally adjusted prices fell month-over-month in June. The biggest price increase was Hartford (+1.2%), Seattle (+1.2%), San Jose (+1.2%).
“At the national level, house prices hit record highs in June on both seasonally and non-seasonally adjusted basis, completely wiping out the adjustment in 2022,” the report said. .
The Midwest and Northeast markets saw the highest annual growth, while the West Coast and pandemic boom markets continued to see prices below last year’s levels. Milwaukee (+6.4%), Cincinnati (+5.7%) and Philadelphia (+5.6%) rose more than 4%, while Kansas City, Virginia Beach, Richmond, Baltimore, Providence, St. Louis and Chicago rose more than 4%.
Rising home prices also boosted homeowners’ capital levels. The average mortgage holder’s net worth is now at his $199,000, up from $185,000 in the first quarter, but down from $207,000 in the same period last year. A strong position in equities is one of the factors behind today’s historically strong mortgage performance, according to the report.
The June report also quantified savings in the last big wave of refinancing activity. Existing homeowners who have benefited from cumulative savings of $42 billion over the past three years through refinancing are now benefiting from strong income growth, Blackknight said. While an existing homeowner would need his 21% of median household income to make the average monthly principal and interest payments, in today’s market, for anyone considering a home purchase, He needs more than 36%.
Low interest rates pegged during the pandemic have deterred existing homeowners from paying, leading to lower delinquency levels. Meanwhile, high interest rates have pushed home affordability to a 37-year low for prospective buyers.
Relatively low percentage of income required to meet mortgage obligations for existing homeowners and high credit quality contribute to serious mortgage delinquencies at 16-year low The report says it does.
