Home prices in the U.S. rose again in April, albeit at a
slightly lower rate than recorded in the prior month. 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 March 2021 to the end of April 2021
at an annualized rate of 10.4 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
May 2021
For the prior twelve months, the Radian HPI rose 9.2 percent
(April 2020 to April 2021), the fastest annual rate recorded since
before the COVID outbreak. While the April month-over-month rate
was slightly lower than the prior month, the twelve-month rate
increased compared to March. Recent annual increases are benefiting
from the more distanced months of lower appreciation recorded
during the early days of the national shut-down. 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.
“As we are now a full year from the initial COVID induced
national closures of 2020, the U.S.’s strong national housing
market continues to chug along in April,” noted Steve Gaenzler, SVP
of Data and Analytics. “Pent-up demand for homes, improving
economic activity, a strong labor market and low mortgage rates
have been strong tailwinds for housing. However, as the U.S. starts
to see growing considerations for ending or reducing government
stimulus (monetary and fiscal) in the coming months, and concerns
of higher potential inflation making headlines, there is a need to
keep a very close eye on housing in the coming half year,” added
Gaenzler.
NATIONAL DATA AND TRENDS
- Median home price in the U.S. rose to $277,356
- Active supply of homes well below long term average
The national median estimated price for single-family and
condominium homes rose to $277,356. Since the start of the COVID
lockdowns in March 2020, the average home in the U.S. has
appreciated by more than $20,000. Home price appreciation over the
past year has increased homeowner equity levels by more than $1.5
trillion dollars.
Gains in home prices are partially due to a continued lack of
supply. After falling for 10 of the prior 12 months, active
listings have now increased three consecutive months—although only
by 32,000 properties from the prior month. In April, more than
881,000 residential properties were for sale, the fifth month with
less than one million properties listed nationally. Over the last
decade, the U.S. has had an average of 1.4 million homes on the
market each month. At the current count of active listings, the
U.S. has 40 percent fewer homes on the market, on average, than at
any time over the past decade.
REGIONAL DATA AND TRENDS
- All Regions reported solid appreciation from prior month.
- Three Western states consistently demonstrate strong home price
appreciation
While all six Regional indices reported higher 12-month rates of
home price appreciation, only two Regions (Mid Atlantic and
Northeast) reported higher rates of appreciation compared to March.
In April, the Northeast narrowly edged out the South Region for the
highest appreciation rate (+11.9 percent). All Regions showed
strength in the month with the worst performing Region (Midwest)
still recording a very impressive 9.1% increase from the prior
month.
Looking at trends from the last six months, the Radian HPI can
identify some state-level winners and losers. The states showing
the greatest increase in appreciation trends include a combination
of South, Southwest and Midwest states including NE, AZ, AR, and
MS. The most consistently strong states for appreciation in the
last half year include ID, MT, GA, and WA. While these states
showed increasing or consistently steady rates of appreciation,
eleven of the 50 states plus DC, recorded lower monthly
appreciation rates than the average appreciation over the last
six-months including NC, ND, WV and KY.
METROPOLITAN AREA DATA AND TRENDS
- Boise got stronger in April
- Large metro areas median price outpace nation
Across the largest or most important metro areas of the U.S.,
the last three-months have been some of the faster appreciating on
record with an average annualized rate of 9.6 percent appreciation.
The strongest metro markets over the last quarter include Boise,
ID, which continues to rise rapidly, Phoenix, AZ and Charlotte, NC.
Some of the slower appreciating larger cities and metro areas over
the last quarter include Boston, MA, Fargo, ND, and Burlington,
VT.
The average median estimated home price of homes in the
50-largest metros ended April at $295,259. However, just the top
20-largest metros topped an average median home price of more than
$385,000. Compared to the national median estimated price, the
largest cities continue to outpace the nation. In April, the
largest metros median stood more than $100,000 higher than the
national median.
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 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 http://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/20210521005515/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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