Home price growth has slowed for 10 months in a row
Home price appreciation went down for the 10th consecutive month in December, according to a recent report from Black Knight.
Ben Graboske, Black Knight’s data and analytics president, said home prices at the national level fell 0.3% from November for their fourth consecutive monthly decline. As a result, the average home has dropped over $2,400 in value since last summer.
“And while home prices are still up on an annual basis, the slowdown continues nationwide and, importantly, is not being driven by seasonal effects,” said Graboske. “December marked the 10th straight month of slowing annual home price appreciation, falling from a high of 6.8% annual growth in February to 4.6% at the end of the year.”
This slowdown could result in an increase in home sales, said Graboske.
"There is good news in these numbers for prospective homebuyers, though. Combined with the average 30-year fixed rate declining by more than half a point over the last three months, housing is now the most affordable it's been since early in the 2018 home-buying season,” said Graboske. “It currently requires 22.2% of median income to purchase the average home with a 20% down payment on a 30-year fixed-rate loan. The recent decline in rates has translated into a more than 6% increase in a homebuyer's purchase power – while keeping monthly payments the same – or a decrease of $62 a month in principal and interest on the average home bought with 20% down.”
