Home prices across the United States continued to climb in
August, rising at an annualized 15.9 percent from the prior month,
the third consecutive month reporting an all-time record
month-over-month rate, according to Radian Home Price Index (HPI)
data released today by Red Bell Real Estate, LLC, a Radian Group
Inc. company (NYSE: RDN). 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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the full release here:
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Radian Home Price Index (HPI) Infographic
September 2021 (Graphic: Business Wire)
The Radian HPI has risen at an annualized rate of 13.2 percent
over the last six months (February 2021 to August 2021), which was
nearly double the rate of the same period in 2020. These annualized
increases represent the continuation of the general upward trend in
home price gains. 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.
“While this month there are signs of some very slight softening
in some of real estate and home price metrics, all-in-all, there is
nothing in this month’s findings that would indicate a pending,
rapid change in appreciation rates,” noted Steve Gaenzler, SVP of
Data and Analytics. Gaenzler added that, “Cessation of state and
federal emergency benefits to consumers and homeowners, including
expanded unemployment insurance and foreclosure moratoriums, will
have an impact in the upcoming months, although right now it
appears to be limited in force.”
NATIONAL DATA AND TRENDS
- Median estimated home price in the U.S. rose to $290,225
- Demand for higher priced homes increased more than for more
affordable ones
Nationally, the median estimated price for single-family and
condominium homes rose to $290,225. Since the onset of the U.S.
pandemic eighteen months ago, homes across the U.S. have
appreciated, on average, by more than $37,000 significantly
reducing leverage and increasing wealth through home equity.
The record rates of appreciation are the result of even stronger
real estate sales activity in 2021 than the same period in 2020,
which itself was the best year for residential home sales in
history. In fact, through the first eight months of 2021, home
sales are running 8.9 percent higher than the first 8 months of
2020. However, the last three months of 2020 saw surges in sales
activity, largely a result of the release of pent-up demand from
the early days of the pandemic and resulting shutdowns.
As home prices have appreciated, there has been an outsized
increase in sale and listing activity in the market for the higher,
if not the highest, priced homes.
Prior to the start of the pandemic, the highest priced homes,
those with sales prices more than $500,000, represented 16.4
percent of all sales. At that time, homes priced between $150,000
and $200,000 represented 27.3 percent of all sales, the largest
cohort of transactions. In the ensuing months, the demand for
highest priced homes has skyrocketed and now represents the largest
portion of the sales activity (27.7%) by count. Sales of homes with
prices below $150,000 now represent less than 10 percent of all
sales. Affordability has become a larger issue during the
pandemic.
REGIONAL DATA AND TRENDS
- All Regions continue to grow
- South and West showed strongest growth for the second straight
month
In August, all six of the Regional indices recorded higher
annual home price appreciation rates than the prior month. The
South and West remained the strongest regions with annualized
one-month appreciation rates (July 2021 – August 2021) of 18.1 and
17.2 percent, respectively.
Home prices continue to be supported by a lack of supply. After
rising for four consecutive months, the number of active listings
fell in August. Months of Supply, which the Radian HPI measures as
the current month’s active listings divided by last month's sales,
is 2.73 months. This was only slightly higher than the record low
ratio of 2.62 months measured in July.
METROPOLITAN AREA DATA AND TRENDS
- Appreciation rates rise in nearly every major city
- Large cities appreciating at a faster rate than before the
pandemic
All 20-largest metro areas of the U.S. recorded faster annual
price appreciation in August when compared to the prior month,
except for Riverside, CA which fell three basis points. With
annualized month-over-month change respectively, Seattle (+17.8%),
Phoenix (+16.8%), and Tampa (+15.0%) were the three fastest
climbers in home prices last month. However, it may prove telling
that Riverside, a community that gained attention for its poor
performance during the Great Recession, is the only metro that
recorded slower home price appreciation this month. Nonetheless, as
of now, according to the Radian HPI, this near unanimous show of
price appreciation is a strong indicator as to the health of the
current U.S. housing market.
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/20210921006091/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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