A Black Knight Financial Service report issued yesterday showed that home prices in the United States continued their slowdown compared to the previous month. The company’s Home Price Index (HPI) nevertheless showed even faster annual price increases.
The firm said that between August and September, there was a 0.16% increase in the HPI, which is a third less than the 0.24% recorded from July to August. Perhaps more importantly, it was the sixth month in a row during which this index grew slower on a monthly basis.
The HPI, which stood at $282,000 at the end of September, still showed a 6.36% yearly increase compared to the annual increase of 6.24% recorded at the end of August.
The deceleration in price increases was spread across the nation. Seventeen of the biggest metropolitan regions and 10 of the 20 biggest states reported lower home price growth than they did during the previous month. The biggest price drop came from Michigan with 0.61%. Among the biggest metropolitan areas, Detroit showed the strongest price drop of 0.58%. Detroit has nevertheless reported price increases of more than 10% so far this year.
Among all states, home prices in New York increased the most at 1.08%. This was the third consecutive month this state topped the list. Rhode Island came in second with 0.93%, with Florida, Montana and Utah all posting price growth of 0.83% or higher.
The metro with the fastest price growth was Kennewick, Washington, with 1.99%. The top ten performing metros – three of which were in New York and five in Florida – all experienced price growth exceeding 1.1%. The only California metro on the list, San Jose, posted yearly price growth of 15%, and its Home Price Index now stands at $1.03 million; this is around four times the national average.
The number of metropolitan areas and states reporting new home price records continued to drop, with only six of the biggest 20 states and 11 of the biggest 40 metros reporting record prices in September.
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