U.S. Winter Season Maintains Fall Season Strength, Radian Home Price Index Reveals
March 23 2021 - 6:30AM
Business Wire
In February, home prices across the United States rose at a
faster pace than the month prior (January 2021) and continued to
appreciate at higher than 2020 average monthly rates. 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 January 2021 to the end of February
2021 at an annualized rate of 8.2 percent. The company believes the
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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Radian Home Price Index (HPI) Infographic
March 2021 (Graphic: Business Wire)
February 2020 was the last month before pandemic-related
shutdowns were implemented nationally. One year past that
transition, home prices have shown tremendous resiliency in
aggregate. The Radian HPI rose 8.3 percent year-over-year (February
2020 to February 2021). In comparison, the year-over-year period
from February 2019 through February 2020 recorded a 7.4 percent
increase in home prices nationally. 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.
“It is crystal clear that home values have withstood the most
severe pandemic in generations. While the general economy struggled
and unemployment rose, millions of Americans saw their property
wealth increase during a time of great personal and economic
stress,” noted Steve Gaenzler, SVP of Data and Analytics. The
average homeowner in the U.S. gained more than $20,000 in wealth
last year due to strong home price appreciation. “Markets large and
small across the country have proven that homeownership can be a
wealth creator that supports the “American Dream,” even in
challenging times,” added Gaenzler.
NATIONAL DATA AND TRENDS
- Median home price in the U.S. rose to $272,186
- Home prices rose an annualized 9.3 percent over the last six
months
Nationally, the median estimated price for single-family and
condominium homes rose to $272,186, representing a more than
$20,800 increase over the $251,384 median estimate at the end of
February 2020. Across the U.S., home prices nationally rose 9.3
percent over the last six months, a strong increase over the prior
six-month appreciation rate of just 6.9 percent.
Housing markets continue to be buoyed by on-going imbalances
between housing supply and demand. February 2021 continued a streak
of records broken. In fact, February 2021 set both the record for
lowest number of active listing in any February, as well as the
highest number of sales in a February. Moreover, the absorption of
inventory was brisk. The number of sales equated to 27 percent of
the number of active listings, suggesting a very strong demand for
inventory.
REGIONAL DATA AND TRENDS
- February gains were solid across nearly all regions
- Midwest softened while Southwest and West showed strongest
gains
Similar to the national reporting, all U.S. regions reported
positive price appreciation in residential markets in February
2021. The MidAtlantic and Northeast were particularly resilient in
what are normally down months for housing activity. While their
appreciation rates were comparable to those recorded over the last
four months, it is more common to see some slowing of appreciation
during winter months in these markets. The Midwest did record the
weakest Regional appreciation rate and was weaker than prior
months. The Southwest and West regions captured the top performing
Regions in February.
At the state level, home price appreciation was positive in all
50 states and the District of Columbia, however 20 of the 51 states
reported slower monthly appreciation in February when compared to
the prior month. Momentum of home price appreciation differs by
state.
METROPOLITAN AREA DATA AND TRENDS
- Metropolitan areas outpaced prior year
- 2021 starting off strong for large metro areas
All the 20-largest metro areas of the U.S. reported positive
price appreciation in February as compared to January 2021. Three
metros -- New York, Philadelphia, and Boston -- recorded slower
annualized price appreciation month-over-month. What is striking,
however, is that 17 of the 20 largest metros report higher rates of
appreciation than in the month prior to the onset of the COVID
pandemic in the U.S in 2020. These metros grew faster in February
2021 than they did in February of 2020. To put that in perspective,
the start of 2020 was the strongest on record post the Great
Recession as housing markets were very strong prior to the pandemic
and reflects the broad strength of housing market prices.
In just the first two months of 2021, the average median
estimated price of homes in the 20-largest metros is higher by
almost $5,000 -- a 78 percent increase over last year’s estimate of
$2,800 for the same period.
ABOUT THE RADIAN HPI
Red Bell Real Estate, LLC, a subsidiary of Radian Group Inc.,
provides national and regional indices for download at
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 its 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20210323005374/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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