Home prices up for first time in eight months – February 2023
The Black Knight Home Price Index reported that February’s decrease in 30-year interest rates resulted in an increase in home prices, halting seven consecutive months of negative growth. This increase was noted in 39 of the 50 largest markets in the United States, marking a significant shift in home price trends. Black Knight’s daily transaction information showed that the purchase market increased as borrowers took advantage of the limited inventory caused by low-interest rates, leading to an uptick in home prices.
However, the U.S. annualized home price growth rate continued to slide, falling to 1.94% in February. Despite the widespread price recovery, prices remained on the wane in cities like Austin, Las Vegas, San Jose, Salt Lake City, and Sacramento. The report attributed the shortage in inventory, which was marked by the largest inventory deficit since May 2020, as the source of the market gridlock. New listings continued to trend below pre-pandemic levels, further contributing to the shortage of inventory. The report concluded that without a significant shift in interest rates, home prices, or household income, this is a self-fulfilling dynamic that will continue for some time.
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This article is a summary of the original in the Scotsmen Guide https://www.scotsmanguide.com/news/black-knight-home-prices-up-for-first-time-in-eight-months/