Home prices across the United States continued to climb in
August, rising at an annualized 8.6 percent from the prior month,
the second highest month-over-month rate of 2020, according to
Radian Home Price Index (HPI) data released today by Red Bell Real
Estate, LLC, a Radian Group Inc. company (NYSE: RDN). The Radian
HPI is the most comprehensive and timely measure of U.S. housing
market prices and conditions.
The Radian HPI has risen at an annualized rate of 6.9 percent
over the last six months (February 2020 to August 2020), which was
slightly higher than the increase of 6.3 percent recorded during
the six-month period ending in July. 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.
“Concerns of broad-based home price collapse as a result of
COVID-19 have been overshadowed by the realities of changing
borrower demands for housing, temporary government intervention,
low mortgage rates and a substantial shortage of supply, resulting
in strong appreciation in most parts of the country,” noted Steve
Gaenzler, SVP of Data and Analytics. Gaenzler added that “six
months into the official U.S. pandemic, the median estimated home
prices have actually risen more than 3.4 percent, or 6.9 percent
when annualized, providing a completely unexpected boon for
homeowners.”
NATIONAL DATA AND TRENDS
- Median estimated home price in the U.S. rose to $260,062
- Lower priced homes appreciating faster than those in middle, or
higher priced tiers
Nationally, the median estimated price for single-family and
condominium homes rose to $260,062. Since the onset of the U.S.
pandemic six months ago, homes across the U.S. rose 6.9 percent, a
slight decrease from the 7.4 percent rise in the prior six-month
period ending in March 2020.
The slight deceleration was due, in part, to changes in the
ability and desire to transact real estate. Property sales in the
first three months of the year outpaced the same period of 2019 by
nearly 10 percent. However, pandemic lock downs drastically
hindered sales in the second quarter causing an elimination of this
outperformance and leaving the count of total sales through June to
fall 6.3 percent below the total from a year prior. Moving toward
the end of the third quarter, total sales counts in 2020 are
running just 2.0 percent below 2019’s pace and, based on current
trends, it is anticipated that 2020 totals will surpass 2019 totals
before year end; an impressive performance given the headwinds.
Nationally, home price appreciation for lower priced homes
remains higher than those of higher priced homes. Homes priced
below $150,000 appreciated over the last year at around 7.5 percent
while the middle tier (150k-500k) and upper tier (>500k)
increased by approximately 4.5 percent and 3.0 percent,
respectively.
REGIONAL DATA AND TRENDS
- All Regions continue to grow
- Northeast accelerates in August while other Regions
decelerate
In August, all six of our Regional indices recorded positive
annual home price appreciation rates. While home price appreciation
slowed in five regions, the Northeast appreciated to its strongest
annual gain of 2020.
Months of Supply, which represents the current month’s active
listings and under contract listings divided by last month's sales,
is 3.55 months. This was down from 4.28 months in June of last
year, and also represented a decrease from May. In general, tight
supply continues to support pricing power for sellers. The average
length of time a property actively listed has been on the market
set another record low in August at 116 days, while the average
length of time properties that sold in the month of August were
listed prior to sale was also near an all-time low at 100 days.
METROPOLITAN AREA DATA AND TRENDS
- Most large cities had slow appreciation in August
- Large cities appreciating at a faster rate than before the
pandemic
Among the 20-largest metro areas of the U.S, all recorded
positive annual price appreciation in August; however, only three
(Phoenix, Miami, Boston) increased their annual appreciation rates.
The remaining 17 cities all slowed slightly. Some data indicate
that larger cities, where high density housing is more prevalent,
are witnessing a renewed interest in moving out of cities into less
dense areas, which is a benefit for the single family,
owner-occupied suburban areas of these metros.
Since the start of the pandemic six months ago, all but three of
the largest metro areas are now growing at a faster rate than in
the six months prior. The three laggards, New York, Baltimore and
Washington D.C., while still showing positive home price
appreciation, are growing slower than their pre-pandemic levels.
The strongest included Minneapolis, St. Louis and Detroit, all with
greater than 8 percent annualized home price appreciation since the
start of March.
ABOUT THE RADIAN HPI
Red Bell, 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.
The company 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/20200917005290/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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