US home price appreciation rate is slowing, though still strong, reveals Radian Home Price Index


WAYNE, Pa.–(BUSINESS WIRE)–In February, U.S. home prices rose at a slower pace than the previous month (January 2022), but continued to appreciate at higher rates than the previous year (February 2021 ). According to Radian Home Price Index (HPI) data released today by Red Bell Real Estate, LLC, a Radian Group Inc. (NYSE: RDN) company, home prices rose across the from the end of January 2022 to the end of February 2022 at an annualized rate of +11.3%. The company believes that the Radian HPI is the most comprehensive and timely measure of prices and conditions in the US real estate market.

February 2021 marked the last month that national house prices appreciated by less than 10%. Since then, the US housing market has experienced a prolific streak of twelve consecutive months of annualized monthly home price appreciation of more than 10%. As a result, the median price of all homes in the United States increased by more than $41,000 in just twelve months. However, after peaking in September 2021, home price appreciation rates have slowed in each of the following five months.

The Radian HPI was up 15.2% year over year (Feb 2021 to Feb 2022). In comparison, the year-over-year period from February 2020 to February 2021 saw an increase of 8.3%. The Radian HPI is calculated based on the estimated values ​​of over 70 million unique addresses each month, covering all types of single-family properties and all geographies.

“After peaking last September, home price appreciation rates have slowed through the fall and winter months. The rest of 2022 will likely pit opposing forces – the desired return to normalcy and spending that comes with the end of the pandemic, and the rising cost of property that has resulted from rising mortgage rates, inflation and past house price increases. While the future is unknown, millions of Americans have seen the value of their homes increase during a time of great personal and economic stress,” said Steve Gaenzler, senior vice president of product, data and to analyse. “The median-priced homeowner in the United States has gained an estimated $62,000 in wealth since the pandemic shutdowns began in March 2020. Ultimately, housing markets large and small across the country have proven that the ‘Homeownership is a wealth creator that sustains the ‘American Dream,’ even in difficult times,” Gaenzler added.

NATIONAL DATA AND TRENDS

  • Median US home price rose to $313,530

  • Home prices have risen 13.9% at an annualized rate over the past three months

Nationally, the estimated median price for single-family homes and condominiums rose to $313,530. In the United States, home prices have risen 16.1% over the past six months, a sharp increase from the prior six-month appreciation rate of just 13.2%.

Even during the winter months, when family-centric housing transactions are typically slow, demand has remained historically strong and supply has remained at historically low levels. Currently, the United States has more licensed real estate agents and brokers than active listings of homes for sale. Additionally, the largest segment of the American population, Millennials, is now in the traditional home buying age. The strength of other forms of housing, such as single-family rental homes, also continues to grow, adding competitive pressure to house prices in some markets.

REGIONAL DATA AND TRENDS

  • February saw slower appreciation across all regions

  • The northeast and midwest softened while the south and southwest remained firm

Similar to national reports, all regions of the United States reported slower price appreciation in residential markets in February 2022. The South and Southwest were particularly resilient as populations grew in these regions due to out-of-state transplants and strong demand from corporate sponsors of single-family rentals. . In what are normally down months for real estate activity, the Northeast and Midwest, unsurprisingly, slowed the most. The Northeast (6.3%) recorded the lowest annualized monthly rate of appreciation, followed by the Midwest (7.8%) and the Mid-Atlantic (8.9%).

At the state level, home price appreciation slowed from the previous month in 46 of the 50 states and the District of Columbia. Only FL, HI, LA, MD and RI saw their appreciation rates increase. Compared to February 2021, 39 states recorded higher one-month appreciation rates compared to 12 states that were slower than the previous year.

The momentum of home price appreciation differs by state. The brakes appear to have been pressed firmly in one particular condition. Idaho, a state that saw very strong appreciation in 2020-21 due to heavy construction of higher-priced homes and rising prices from existing home sales, recorded only a of 3.9% annualized appreciation in February, the weakest month for the state in years. .

DATA AND TRENDS ON THE METROPOLITAN AREA

  • Larger metropolitan areas outperformed smaller or rural areas in February

  • Miami continues to outperform local markets

Of the 20 largest metropolitan areas in the United States, all recorded positive price appreciation in February compared to January 2022. Three metros, Seattle, Tampa Bay and San Diego, recorded the fastest price appreciation, with Boston, Chicago and New York. producing the lowest appreciation. South Florida has seen an increase in immigration, attracting many people from outside the region. As a result, Metro Miami recorded a record monthly rate of appreciation in February 2022, higher than at any time before, during, or after the pandemic.

In the first two months of 2022 alone, the estimated average median home price in the 20 largest cities was nearly $6,400 higher. That’s nearly 30% more than the estimated $5,000 increase in the first two months of 2021.

ABOUT THE HPI RADIAN

Red Bell Real Estate, LLC, a subsidiary of Radian Group Inc., provides national and regional indexes for download at info.radian.com/hpias well as information on how to access the full library of indexes.

Additional housing market content can also be found on the Radian Insights page located at https://radian.com/news-and-knowledge/insights.

Red Bell offers Radian HPI data to info.radian.com/hpi for content visualization and data extraction. The engine behind the Radian HPI has created over 100,000 unique data sets, 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 market or property attributes. The platform provides monthly updated access to nine different geographic dimensions, from country level down to postal codes. Additionally, the Radian HPI provides unique insights into market changes, conditions, and strength across multiple property attributes, including number of bedrooms and living area. To help improve its clients’ understanding of granular real estate markets, the library is regularly expanded to include more insightful indexes.

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 industry-leading mortgage insurance and a comprehensive mortgage, risk, title, appraisal, 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 address and manage risk. To visit www.radian.com to see how Radian is shaping the future of mortgage and real estate services.

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