The annualized price appreciation trajectory slowed in October to 9.3% from 10.7% according to Black Knight’s recent report.
According to Black Knight, home prices peaked in June 2022 at $438,000, with October’s home prices falling from June highs by 3.8%.
Probably the big news is early payment defaults showed that they were rising among FHA borrowers over the last year. According to the Black Knight report, more than 25% of 2022 FHA/VA mortgage holders have now dipped into negative equity, with another 80% of those having less than 10% equity. This totals 35% of all FHA/VA mortgage holders that have either gone into negative equity or have less than 10% equity.
These market dynamics are now slowing and in some cases are reversing; of all the homes purchased with a mortgage in 2022, 8% are now at least marginally underwater.
The Black Knight report also indicates 40% of those homes purchased in 2022 have less than 10% equity stakes in their home.
The inventory shortage continues to put pressure on buyers, especially for the first-time buyers, creating an affordability crisis, hitting 35-year lows.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency,www.counsellorstitle.net,founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single-family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.
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