August saw an unusually hefty bump in home prices, marking the fourth straight month with a new record peak, according to the latest ICE Mortgage Monitor Report from Black Knight. On a seasonally adjusted basis, home prices rose 0.68% month over month in August — a gain that Black Knight described as “exceptionally strong” for the month. Likewise, the non-seasonally adjusted monthly gain in August was 0.24%, up more than 60% from the August average for the last 25 years. National home prices, seasonally adjusted, are now 2.5% above their 2022 high-water mark. Two-thirds of major markets have hit their previous highs, and nearly half of major markets saw August increases of at least 0.75%.

More gains are projected on the way, according to Andy Walden, vice president of enterprise research strategy at Intercontinental Exchange (which formally acquired Black Knight recently). “After essentially flattening earlier this year, year-over-year home price growth has been reaccelerating for the last few months. … August marked the second consecutive month in which annual [home price appreciation] trended higher in every one of the 50 largest U.S. markets, mirroring the sharp reacceleration we’re seeing at the national level,” Walden reported.“ Already baked-in price gains mean further acceleration may be on the horizon. If adjusted home prices were to freeze where they are now, it would result in annual [home price appreciation] rising above 5% by year’s end, given the strong price increases seen earlier this year.”

Source: Scotsman Guide