Home Prices Slow Down, but Still Continue to Rise


Among the house price indexes covered by MND, the one provided
by Black Knight has shown the most consistent pattern of diminishing
appreciation in recent months.  The
company’s Home Price Index (HPI) has slowed from a monthly gain of 1.3 percent
in March to 0.16 in September.  But it
reversed direction in October, rising by 0.29 percent; not a big gain, but the largest
since July.  The increase brings US home
prices to another new high, $283,000.

The month-over-month slowdown has not yet caught up
with the annual rate of increase.  Prices
have gone up 6.39 percent over the first 10 months of 2017 and were up 6.48
percent for the 12 months ended in October.

Eleven of
the nation’s 20 largest states and 12 of the 40 largest metros saw their home
prices hit new highs
in October.  New
York continued its run at the top of the chart; its 0.98 percent rise in prices
gave it the lead for the fourth straight month.  Idaho had the second largest
increase at 0.94 percent, followed by Utah (0.75 percent), Vermont (0.74 percent)
and Nevada (0.68 percent.)

San Jose had
the fastest growth among metropolitan areas. Its 1.86 percent increase from
September brought it to a total of 17 percent since October 2016. Dover,
was second with a monthly gain of 1.50 percent while Pueblo, Colorado;
Hot Springs, Arkansas; and Grand Junction, Colorado all had increases exceeding
1.0 percent.

There were
still signs however that appreciation is weakening.  Prices fell month-over-month in eight states,
led by Alaska at -0.47 percent.  Oregon,
which had been among the top two or three states in price appreciation earlier
this year also saw a loss of 0.27 percent. Michigan, Illinois, and North Dakota
were among others posting prices declines.

The Black Knight utilizes repeat sales data from
public records and its own loan-level mortgage performance data, to produce its

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