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Home Prices Approaching New Peak

The average price of a single-family home reached $265,000 in June, which is 32 percent higher than the market bottomed out in 2012 and only 1.1 percent off from a new peak, according to Black Knight Financial ServicesHome Price Index (HPI) for June 2016 released Monday.

Home prices were up by 5.3 percent year-over-year and 0.8 percent month-over-month in June, marking the 50th consecutive month of home price appreciation, according to Black Knight.

Out of the 20 largest states and 40 largest metros (by population), only Missouri and the St. Louis Metro area experienced year-over-year declines in home prices. Six of the 20 largest states hit new peaks in June: Indiana ($149K), Massachusetts ($372K), New York ($359K), Tennessee ($186K), Texas ($226K), and Washington ($337K). Out of the 14 largest metros, 14 hit new peaks for home prices in June, Black Knight reported.

The markets that have seen the most appreciation for the first half of 2016 are Portland, Oregon; Seattle, Washington; and Denver, Colorado, all with greater than 9 percent.

Carson City, Nevada, was the metro with the greatest rate of home price appreciation in June at 2.4 percent, followed by Cleveland at 1.9 percent, according to Black Knight. Two cities in Washington, Walla Walla and Longview, were next at 1.8 percent each.

The five states out of the largest 20 with the highest home price gains were Michigan (1.6 percent), Wisconsin (1.5 percent), Oregon (1.4 percent), Washington (1.4 percent), and Ohio and Colorado tied for fifth at 1.3 percent each.

The San Jose metro area, which saw the average home price peak at $920,000 in May 2016, experienced a decline of 0.3 percent down to $917,000 in June 2016. Even with the slight monthly decline, San Jose’s June average price of $917,000 is still up by more than 81 percent from its trough. The only other metro in June with a higher gain from its trough was

San Jose and Naples, Florida (0.4 percent), were the only two metros to see negative movement in home prices over-the-month, according to Black Knight.

Click here to view the entire Black Knight Home Price Index for June 2016.

About Author: Seth Welborn

Seth Welborn is a Harding University graduate with a degree in English and a minor in writing. He is a contributing writer for MReport. An East Texas Native, he has studied abroad in Athens, Greece and works part-time as a photographer.
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