Home-Price Appreciation Gets Largest Boost in Months

Black Knight reveals that home-price appreciation had its largest single-month increase in two years in September, rising 0.2% to 3.95% for the month—the highest its been since March when home-price growth was in a 16-month slow trend. 

The average home price is up 54% from the bottom of the market from early 2012, and is 15% higher than the pre-crisis peak set in June of 2006. 

Mortgage rates, however, has risen in recent weeks, as Black Knight says rates hit 3.78%, according to Freddie Mac’s latest Primary Mortgage Market Survey. This is the highest the 30-year rate has been since June. 

“This week marks the third consecutive week of rate increases, which hasn’t happened since April of this year. That said, purchase activity continues to show strength, indicating obvious homebuyer demand,” said Sam Khater, Freddie Mac’s Chief Economist. “However, the lack of housing supply remains a major barrier to not just the housing market, but the overall economic recovery.”

Boise, Idaho, had the highest appreciation rate of 11.80%. Spokane-Spokane-Valley, Washington, was a close second at 11.2%, followed by Odgen-Clearfield, Utah (9%), St. Louis, Missouri-Illinois (8.80%), and Memphis, Tennessee-Arkansas-Mississippi (7.60%). 

San Jose-Sunnyvale-Santa Clara, California, had the lowest growth rate at -5.30%. Bridgeport-Stamford-Norwalk, Connecticut, had a -0.50% growth rate. 

Additionally, San Francisco-Oakland-Hayward, California, had a growth rate of .20%, Cape Coral-Fort Myers, Florida, grew at just 0.70%, and Honolulu, Hawaii, grew at 0.70%. 

CoreLogic also reported that home-price growth increased 3.5% year-over-year in September, and are expected to grow 5.6% over the next year to September 2020. 

The home-price grain for the month was down from September 2018’s increase of 5.3%, but was up 3.3% from August 2019’s gain. 

Home values in the lowest-price tier increased 5.3% annually in September 2010, compared to 4.6% for the low-to-middle price tier. Middle-to-moderate priced homes rose 3.9% and homes in the high-price tier increased 3.1%. 

Idaho led the nation in home-price appreciation for the twelfth-consecutive month, with an annual appreciation of 11.8% in September. Values in 41 states have risen above pre-crisis peaks. 

California, Idaho, and Michigan have surpassed their pre-crisis peaks during the month. Connecticut’s home prices were the farthest below their all-time Home Price Index high—16.2% below the July 2006 peak.