JACKSONVILLE, Fla. (8/25/15)--Home prices in June rose 5.1% on a year-over-year basis, according to data released Monday by the Jacksonville, Fla.-based Black Knight Financial Services.
The national aggregate index climbed to $252,000 during the month, just 6% behind the number’s historical peak, which was recorded in June 2006, and 26% higher than its record low from January 2012 (Economy.com Aug. 24).
“House prices continued to post strong gains across the country, according to the Black Knight aggregate index,” said Jesse Rogers, Moody’s analyst (Economy.com Aug. 24). “However, income growth has trailed gains in house prices, keeping the pace of residential construction at a low simmer.”
On a seasonally adjusted basis, the national aggregate index rose by 0.56% in June from May, and 0.9% on a not-seasonally adjusted basis.
Regionally, the West posted the strongest price appreciation, followed by the South, the Midwest and the Northeast.
By home-price tier, those houses in the lowest quintile reported the fastest rate of appreciation with a 5.8% annual jump; followed by the second-lowest quintile with a 5.7% increase; and the highest quintile with a 4.7% pickup.
“An easing of mortgage credit standards will help boost home sales,” Rogers said. “Mortgage underwriting standards are still tight, but there have been signs of improvement as the share of mortgage originations with credit scores above 700 started to drop. Improving mortgage credit and accelerating wages will lift residential construction and house prices in the second half of the year.”