Black Knight: Home Prices See Strongest Start Since 2005

Black Knight, Jacksonville, Fla., said median home prices have risen by 1.24 percent nationally since the start of 2018, with both January and February having their strongest respective single-month growth rates since 2005.

The company’s monthly Mortgage Monitor report said the rate of national home price appreciation has continued to accelerate as interest rates are rising, further tightening affordability in 2018. Western states in particular saw the highest rates of appreciation, representing all 11 markets with 10 percent or higher annual growth.

The report noted the median home price in San Jose, Calif., has risen 24.1 percent in the past 12 months to $1.17 million, with the rate of appreciation increasing by more than 18 percent from the 6 percent seen at the start of 2017. More than half of the nation’s 100 largest markets have median home prices less than the $226,000 annual increase seen in San Jose

However, the report also noted home price growth has been widespread, with 98 of the largest markets and 97 percent of 916 observed metro areas with annual increases.

Black Knight Data & Analytics Executive Vice President Ben Graboske explained, acceleration in the annual rate of home price appreciation at the national level continued through February, but that acceleration is not being seen in all markets. He noted across the country, the report observed a 60-40 split in the number of markets experiencing home price appreciation vs. those with some degree of deceleration.

“As of the end of February, home prices had risen 6.65 percent from a year ago, a metric that continues to increase,” Graboske said. “The rate of appreciation has accelerated by 42 basis points over the past six months and by 72 basis points over the past 12 months. This acceleration, combined with a nearly 40 basis point increase in the prevailing 30-year fixed interest rate during that same time frame, is creating a tighter affordability climate. We have now seen monthly increases in the national median home price for 27 of the past 28 months, and annual gains for 70 consecutive months.”

The report said of nearly 28 million borrowers in 30-year mortgages originated in 2012 or later, fewer than 45,000 have 75 basis points of interest rate incentive to refinance and meet broad-based eligibility requirements

Other key report data:

–Total U.S. loan delinquency rate: 3.73 percent, a month over month drop of 13.24 percent.

–Total U.S. foreclosure pre-sale inventory rate: 0.63 percent, a 3.21 percent drop from January.

–States with highest percentage of non-current loans: Mississippi, Louisiana, Florida, Alabama and West Virginia.

–States with lowest percentage of non-current loans: Colorado, Oregon, Washington, Minnesota and North Dakota.

–States with highest percentage of seriously delinquent loans: Florida, Mississippi, Louisiana, Texas and Alabama.