Black Knight, Inc. (NYSE:BKI) shares post slight gains Thursday, after its Data & Analytics division released a high-level summary of the latest Home Price Index for July 2023. Even with interest rates hovering near 7.25%, home price growth continued in July to push home prices to yet another record high. However, as Black Knight Vice President of Enterprise Research Andy Walden explains, there were some mixed signals in the market data for July, raising questions about a potential downshift.
"Home prices continued to rise in July, hitting a new record high for the third month running," said Walden. "After picking up some small momentum in May and June following 14 straight months of slowing, the annual growth rate spiked to 2.3% in July. Further reacceleration is likely on tap for August as well, given that adjusted prices are already up 4.4% so far this year. Even if seasonally adjusted prices were to stop rising tomorrow, annual home price growth would climb to +2.9% by August and cross +4% by November, simply due to price gains that are already 'baked in.'
“If price gains were to maintain their current pace – which is unlikely given how tight affordability has become – it would result in annual gains returning above 7.5% by the end of the year. Either way, further acceleration in annual appreciation is almost a certainty for August. But that's only half the story in July's data – the housing market is sending somewhat mixed signals.”
BKI shares took on five cents to $75.83.
