by Calculated Risk on 5/06/2024 11:01:00 AM

Today, in the Real Estate Newsletter: ICE Mortgage Monitor: Annual home price growth eased in March

Brief excerpt:

Press Release: ICE Mortgage Monitor: Historically Strong Home Price Growth Pushes U.S. Mortgage Holders’ Tappable Equity to Record $11T

Here is the year-over-year in house prices according to the ICE Home Price Index (HPI). The ICE HPI is a repeat sales index. Black Knight reports the median price change of the repeat sales. The index was up 5.6% year-over-year in March, down from 6.0% YoY in February.

• Home price growth slowed in March, driven by a tightening of both mortgage rates and home affordability, but continues to remain historically strong

• Annual home price growth eased from an upwardly revised 6.0% in February to +5.6% in March, with prices rising by a seasonally adjusted +0.42% in the month, down from a revised +0.58% in February

• On a non-adjusted basis, prices were up +1.2% in March, more than 25% above the 25-year March average of +0.96%

• March marked the third straight month of above average monthly growth, after monthly gains fell below the 25-year average in five of the final six months of 2023, dampened by elevated interest rates

• While rising interest rates suppressed purchase demand and allowed modest inventory growth this spring, prices have remained resilient so far

• That said, adjusted monthly growth continuing at or near its currently rate would result in modestly slowing annual home price growth as we move into summer

There is much more in the article.