US Home Prices Decline for Second Consecutive Month, According to Black Knight Data & Analytics

The Data & Analytics division of Black Knight Inc. on Monday (10-3-22) released its latest Mortgage Monitor Report (MMR) for August. The MMR is based upon the company’s industry-leading mortgage, real estate, and public records datasets.

The median home price in August declined 0.98%, a slight improvement from July’s monthly decline of 1.05%. The average home price is down 2% ($8,800) from its peak in June. These declines come as we enter the historically slower fall-winter homebuying season.

Limited inventory and increasing mortgage rates—in the 7% range for some buyers—have driven mortgage affordability to its lowest level since the early 1980’s. This is quite a reversal from the frantic boon in buying experienced during 2020 and 2021.

With mortgage rates at 6.7% (as of September 29, 2022), Black Knight estimates that it now takes 38.2% of median household income to make the monthly mortgage payment on the median-price home bought with a 30-year mortgage and 20% down. That monthly payment is up $930 from August 2021, or a 73% increase.

Black Knight added that home prices are beginning to fall from post-pandemic peaks but remain up 12.1% from August 2021, due to record growth seen in late 2021 and early 2022. Annual home price growth rates are poised to continue falling in coming months. However, it’s unclear where the bottom will be.