Home prices reach new high in October

The Scotsman Guide - Will McDermott - 27 December 2017

As home-price appreciation accelerated again after six months of slowing growth, the national home price index (HPI) reached a new high of $283,000 in October, according to Black Knight's most recent HPI report. Home prices in October increased 0.29 percent from September, according to the report.

Year over year, home prices have risen by 6.48 percent nationally, according to the October 2017 report. Eleven of the 20 largest states hit new peaks in October, as did 12 of the 40 largest metros tracked by Black Knight.

Using both sales data and mortgage loan data, the Black Knight HPI report covers nearly 90 percent of U.S. homes at the zip-code level. The numbers cited in the report are not seasonally adjusted.

New York had the highest home price appreciation in October among all states, with a 0.98 percent increase over September’s mark. New York has seen the highest state-level appreciation in the last four of Black Knight’s monthly reports.

Other states with high home-price appreciation include Idaho (0.94 percent), Utah (0.75 percent) and Vermont (0.74 percent). Eight states saw home prices decline in October, with Alaska (-0.47 percent) and Oregon (-0.27 percent) seeing the worst monthly price depreciation.

San Jose, California, led metro areas with 1.86 percent monthly home-price appreciation. Prices in San Jose have increased more than 17 percent since October 2016, according to the report.

Other cities where prices increased by more than 1 percent in October, compared with the prior month, include Dover, Delaware, (1.5 percent); Pueblo, Colorado, (1.15 percent); Hot Springs, Arkansas, (1.13 percent); and Grand Junction, Colorado, (1.04 percent). Detroit; Anchorage, Alaska; and Portland, Oregon, tied for the worst price performance in October among metro areas. All three metros recorded 0.54 percent declines in home prices from September, according to the report.