Housing Values Keep Going Up

Black Knight August 2023 Mortgage Monitor Report Highlights -

Home prices are at record highs, both nationally and locally.

- The lack of inventory continues to drive up prices.

- Annual home price growth rates are increasing, impacting the rate of appreciation.

"We've been noting for some months that the recent rate of home price gains would have a lagging, but significant, impact on the annual rate of appreciation." Andy Walden, Black Knight VP of Enterprise Research

- The Black Knight Home Price Index (HPI) has reached a new record high. 60% of major markets Have Also Hit Record Highs 0.8% in June up from 0.2% in May. Annual growth rates have jumped back to More than 80% of markets are experiencing higher appreciation.

"Rising home prices have boosted homeowner equity levels as well." Andy Walden

- Homeowner equity levels have recovered from their decline in 2022. Mortgage holders have $16T in wealth, and $10.5T of that equity is "tappable" or available for homeowners to borrow against with the average mortgage holder has $199K in available equity.

The average mortgage "In terms of negative equity, or 'underwater borrowers,' it's a nearly nonexistent phenomenon in today's market." Andy Walden

Housing Values Keep Going Up

Only 344K homeowners owe more on their homes than they are worth.

- 70% increase from last year but significantly lower than pre-pandemic levels.

Only 3.9% of homeowners have less than 10% equity, down from 6.6% in 2019.

Mortgage Advisor Tip - The housing market continues to heat up, with no end in sight to rising prices. There are may ways you can provide value at all levels of the cycle - consider earning your CLA - Certified Liability Advisor and become a true mortgage advisor.