Residential Market Prices Surge as Home Prices Reach New Highs

The housing market is approaching an inflection point as home prices are expected to sharply increase, according to Black Knight. After five consecutive months of gains, home prices have reversed the pullback that began last July. While prices are currently down 0.1% on a year-over-year basis, Black Knight anticipates a significant upward trend in the coming months. The housing market's resurgence is widespread, with many markets reaching or surpassing their previous price peaks. However, housing supply remains tight, and affordability is a concern due to high mortgage rates and rising costs. The Federal Reserve faces the challenge of achieving a "soft landing" without reigniting inflation.