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U.S. Home Prices Rise During First Six Months of Pandemic, Radian Home Price Index Reveals
The Radian HPI has risen at an annualized rate of 6.9 percent over the last six months (
“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
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
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
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
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,
ABOUT THE RADIAN HPI
Red Bell, a subsidiary of
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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