Today, in the Calculated Risk Real Estate Newsletter: Black Knight: Median House Prices Declined in July; First Decline in 32 Months
A brief excerpt: Important caveats: In normal times, median house prices flatten or decline seasonally in the 2nd half of the year. So, a decline in July isn’t unusual.
Also, the median price is distorted by the mix of homes sold. The repeat sales indexes – like Case-Shiller and FHFA – are better measures of house price movements, but median prices can be a leading indicator of price changes.
From Andy Walden at Black Knight: Something Had to Give: Home Prices Down for First Time In 32 MonthsAnnual home price growth still clocked in at 14.3% – more than three times the long-run average – but most of that appreciation occurred in the last months of 2021 and earlier this year. Such strong annual growth rates can hide underlying weakness. Month-over-month data gives us a much clearer picture of just how much – and how quickly – the housing market has shifted.
The median home price fell by 0.77% in July, the largest single-month drop since January 2011. On a seasonally adjusted basis, July’s dip ranked among the 10 largest monthly declines on record, dating back more than 30 years.There is much more in the article. You can subscribe at https://calculatedrisk.substack.com/