Home Prices Dropped Month-to-Month Despite High Annual, Mortgage Rates

Home prices could be cooling off according to Black Knight.

Posted September 1, 2023

The housing market is sending mixed signals according to real estate data and analytics company Black Knight.

The company released its Home Price Index for July 2023 last week and reported the annual rate increased to 2.3 percent from a revised 0.9 percent in June. Also adding, August will likely see further growth with prices already up a seasonally adjusted 2.9 percent from August 2022 and 4.4 percent from the start of the year.

However, Black Knight vice president of enterprise research Andy Walden believes the market data for July could be raising questions about a potential downshift in home prices.

“While home prices rose on both seasonally adjusted and non-adjusted bases, July’s 0.23 percent non-adjusted month-over-month growth was smaller than the 0.34 percent non-adjusted increase July has seen on average over the past 25 years, suggesting a possible transition may be underway,” Walden said.

It now takes 38.3% of the median household income to make the monthly payment on the median-priced home purchase, making housing the least affordable that it’s been since 1984, according to Black Knight.

View the full report, here.