2021 Home Prices Pick Up Right Where 2020 Left Off, Radian Home Price Index Reports
February 22 2021 - 4:30PM
Business Wire
After an historic 2020, the first month of 2021 weakened—albeit
just slightly. According to Radian Home Price Index (HPI) data
released today by Red Bell Real Estate, LLC, a Radian Group Inc.
company (NYSE: RDN), home prices nationally rose from the end of
December 2020 to the end of January 2021 at an annualized rate of
7.5 percent. We believe Radian HPI is the most comprehensive and
timely measure of U.S. housing market prices and conditions
available in the market today.
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For the past twelve months, the Radian HPI rose 8.0 percent
(January 2020 to January 2021), unchanged from the prior month’s
annualized rate. Over the last six months of the year, home prices
nationally appreciated at an annualized rate of 9.4 percent. This
represents the fastest rate of 6-month appreciation in more than a
year. The Radian HPI is calculated based on the estimated values of
more than 70 million unique addresses each month, covering all
single-family property types and geographies.
“Home prices picked up in January, about where they left off in
December. Home prices across the U.S. were solidly in positive
territory once again,” noted Steve Gaenzler, SVP of Data and
Analytics. “With elections, inaugurations and the holidays behind
us, and vaccinations and modest levels of potential normalcy
visible on the horizon, it shouldn’t surprise many that homes
prices continue to be a shining star,” added Gaenzler.
NATIONAL DATA AND TRENDS
- Median home price in the U.S. rose to $270,334
- Distressed sales and listings at all time low
The national median estimated price for single-family and
condominium homes rose to $270,334. From December 2020 to January
2021 the one-month appreciation, an annualized 7.5 percent rate,
was the slowest recorded since August 2020. Historically, home
prices have come under pressure during periods of economic stress
as foreclosure sales and other distressed transactions add
discounted properties into the inventory. During the Great
Recession, monthly volume of sold properties that were considered
distressed peaked at nearly 82,500 units (March 2011) and
represented more than 43 percent of all sales that month. In
contrast, January 2021 recorded the lowest ever number of
distressed sales transactions, at 11,212 units. The tally
represented just 4.9 percent of total sales for the month. This
lack of distressed supply is a marked difference from prior periods
of economic stress.
REGIONAL DATA AND TRENDS
- Southwest was only region to increase price appreciation rate
in January
- South region was the strongest last month
While still firmly positive, regionally, five of the six regions
had softer home price appreciation in January 2021 compared to the
prior month. In January, the Southwest Region (+7.9 percent
annualized) was the only region to accelerate price appreciation
from December’s strong month. However, it was the South region (+
8.9 percent annualized) that captured the top position for price
growth in January.
A closer look at state level home price appreciation rates in
January shows distinct differences by state. States in the West
(ID, WA, MT, OR) held four of the top 10 states for positive
appreciation, while the South (AL, LA) also fared well. However,
these states are smaller components of the housing stock in their
respective regions, diminishing their impact on the broader
regional indices.
METROPOLITAN AREA DATA AND TRENDS
- Seattle is only large metro to record accelerating price growth
in January
- Large metro area’s median price outpaces nation
Across the 20-largest metro areas of the U.S, the start of 2021
resembles the national trend. In 18 of the 20 largest metros,
January’s appreciation was the slowest since the third quarter of
2020. In most cases, August was the last time there were similar
appreciation rates. This underscores the significant appreciation
rates recorded in the fourth quarter as mortgage rates once again
fell to all-time lows.
The average median estimated home price of homes in the
20-largest metros ended January at $376,158. Compared to the
national median estimated price, the largest cities continue to
outpace the nation. In January, the largest metros’ median stood
more than $105,000 higher than the national median, the largest gap
in over two years.
ABOUT THE RADIAN HPI
Red Bell Real Estate, LLC, a subsidiary of Radian Group
Inc., provides national and regional indices for download at
info.radian.com/hpi, along with information on how to access the
full library of indices.
Additional content on the housing market can also be found on
the Radian Insights page located at
https://radian.com/news-and-knowledge/insights.
Red Bell offers the Radian HPI data set along with a client
access portal for content visualization and data extraction. The
engine behind the Radian HPI has created more than 100,000 unique
data series, which are updated on a monthly basis.
The Radian HPI Portal is a self-service data and visualization
platform that contains a library of thousands of high-value indices
based on both geographic dimensions as well as by market, or
property attributes. The platform provides monthly updated access
to nine different geographic dimensions, from the national level
down to zip codes. In addition, the Radian HPI provides unique
insights into market changes, conditions and strength across
multiple property attributes, including bedroom count and livable
square footage. To help enhance customers’ understanding of
granular real estate markets, the library is expanded regularly to
include more insightful indices.
In addition to the services offered by its Red Bell subsidiary,
Radian is ensuring the American dream of homeownership responsibly
and sustainably through products and services that include
industry-leading mortgage insurance and a comprehensive suite of
mortgage, risk, title, valuation, asset management and other real
estate services. The company is powered by technology, informed by
data and driven to deliver new and better ways to transact and
manage risk. Visit www.radian.com to see how Radian is shaping the
future of mortgage and real estate services.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210222005857/en/
For Investors John Damian – Phone: 215.231.1383 Email:
john.damian@radian.com
For the Media Rashi Iyer – Phone: 215.231.1167 Email:
rashi.iyer@radian.com
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