PHILADELPHIA CREAM – (COMMERCIAL THREAD) – Home prices in the United States continued to climb in August, increasing at an annualized rate of 15.9% from the previous month, the third month in a row recording a record month-over-month rate , according to the Radian Home Price Index (HPI) released today by Red Bell Real Estate, LLC, a Radian Group Inc. (NYSE: RDN) company. The company believes the Radian HPI is the most comprehensive and timely measure of US real estate market prices and conditions available on the market today.
The Radian HPI has grown at an annualized rate of 13.2% over the past six months (February 2021 to August 2021), nearly double the rate for the same period in 2020. These annualized increases represent the continuation of the trend general upward gains in house prices. The Radian HPI is calculated based on the estimated values ââof over 70 million unique addresses each month, covering all types of single-family properties and all geographies.
“Although this month there are signs of a very slight slowdown in some measures of real estate and house prices, overall there is nothing in this month’s findings that would indicate a rapid and pending change in appreciation rates, “noted Steve Gaenzler, senior vice president of data and analytics. Gaenzler added that “the termination of state and federal emergency benefits to consumers and homeowners, including the extension of UI and moratoriums on foreclosures, will have an impact in the coming months, although ‘at present it appears to be limited in force. ”
NATIONAL DATA AND TRENDS
The estimated median price of homes in the United States rose to $ 290,225
The demand for more expensive housing has increased more than that for more affordable housing
Nationally, the estimated median price of single-family and condominium homes reached $ 290,225. Since the pandemic began in the United States eighteen months ago, homes in the United States have appreciated, on average, by more than $ 37,000, significantly reducing leverage and increasing wealth through home equity.
The record appreciation rates 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, in the first eight months of 2021, home sales are 8.9% higher than in the first 8 months of 2020. However, the last three months of 2020 saw an increase in sales activity. , in large part due to the release of pent-up sales. demand from the first days of the pandemic and the resulting closures.
As home prices have appreciated, there has been a disproportionate increase in selling and listing activity in the market for the most expensive homes, if not the most expensive.
Before the start of the pandemic, the most expensive homes, those with a sale price over $ 500,000, accounted for 16.4% of all sales. At that time, homes priced between $ 150,000 and $ 200,000 accounted for 27.3% of all sales, the largest cohort of transactions. In the months that followed, demand for the more expensive homes skyrocketed and now accounts for the bulk of sales activity (27.7%) in numbers. Sales of homes priced under $ 150,000 now represent less than 10% of all sales. Affordability has become a bigger issue during the pandemic.
REGIONAL DATA AND TRENDS
All regions continue to grow
South and West posted the strongest growth for the second consecutive month
In August, the six regional indexes recorded higher annual house price appreciation rates than the previous month. The South and West remained the strongest regions with one-month annualized appreciation rates (July 2021 – August 2021) of 18.1 and 17.2%, respectively.
Home prices continue to be supported by a lack of supply. After increasing for four consecutive months, the number of active listings declined in August. The months of supply, which the HPI Radian measures as the current month’s active listings divided by last month’s sales, are 2.73 months. This was only slightly above the record low ratio of 2.62 months measured in July.
METROPOLITAN REGION DATA AND TRENDS
Appreciation rates are rising in almost all major cities
Big cities appreciate faster than before the pandemic
The 20 largest metropolitan areas in the United States saw faster annual price appreciation in August compared to the previous month, with the exception of Riverside, Calif., Which lost three basis points. With an annualized month-to-month change, respectively, Seattle (+ 17.8%), Phoenix (+ 16.8%) and Tampa (+ 15.0%) were the three fastest to climb in prices homes last month. However, it may be telling that Riverside, a community that has drawn attention for its poor performance during the Great Recession, is the only metro to have recorded a slower appreciation in house prices this month. However, for now, according to the Radian HPI, this almost unanimous demonstration of price appreciation is a strong indicator of the health of the current US real estate market.
ABOUT RADIAN HPI
Red Bell Real Estate, LLC, a subsidiary of Radian Group Inc., provides national and regional indexes for download at radian.com/hpi, as well as information on how to access the comprehensive index library.
Additional housing market content is also available on the Radian Insights page located at https://radian.com/news-and-knowledge/insights.
Red Bell offers the Radian HPI dataset as well as a customer access portal for content visualization and data extraction. The engine behind the HPI Radian has created over 100,000 unique data sets, which are updated monthly.
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 market or property attributes. The platform provides monthly updated access to nine different geographic dimensions, from national level to postal codes. Additionally, the HPI Radian provides unique insight into market changes, conditions and strength across several property attributes, including number of bedrooms and living area. To help improve clients’ understanding of granular real estate markets, the library is regularly expanded to include more insightful clues.
In addition to the services offered by its subsidiary Red Bell, Radian ensures the American dream of responsible and sustainable homeownership through products and services that include state-of-the-art mortgage insurance and a full range of mortgages, risks , securities, valuation, asset management and other real estate services. The business is powered by technology, informed by data, and motivated to deliver new and better ways to deal with and manage risk.
Visit http://www.radian.com to see how Radian is shaping the future of mortgage and real estate services.