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WAYNE, Pennsylvania – (BUSINESS WIRE) – After a very strong third quarter, US home prices rose again in October, albeit more slowly than in September. Radian HPI rose at an annualized rate of 17.3 percent in October, slightly below 17.6 percent the previous month, according to Radian Home Price Index data released today by Red Bell Real Estate, LLC, a Radian group ( HPI) is made up of Inc. (NYSE: RDN). The company believes the Radian HPI is the most comprehensive and up-to-date measure of prices and conditions in the US housing market available in the market today.
While the one-month trend was slightly lower, the Radian HPI rose nationwide by 12.9 percent in the twelve months since November 2020. That pace represented another month in which this metric delivered a record year-over-year and was the second-best appreciation rate compared to the previous month of 2021. The Radian HPI is calculated based on estimated values greater than 70. calculates millions of unique addresses each month covering all types of single family homes and regions.
“The slowdown in the national appreciation rate in October marks the first drop in comparison to the previous month in three quarters. However, the US winter shopping season usually means less activity, so that slowdown can simply have seasonal effects, ”noted Steve Gaenzler, SVP of Data and Analytics. Gaenzler added: “Slowing down historical revaluation rates can help as affordability continues to be affected by the rapid revaluation in many metropolitan areas. Existing homeowners have been instrumental in helping this upgrade, but at the potential expense of many looking to enter the market for the first time. ”
NATIONAL DATES AND TRENDS
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The average estimated home price in the US rose to $ 298,748
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October recorded the lowest number of active offers since October, with a continuing decline in stocks
At the national level, the average estimated price for single family and condominiums rose to $ 298,748. Since early 2021, the average estimated home price in the US has increased more than $ 30,000, nearly double the absolute increase seen nationwide in the first 10 months of last year. Broken down by region, the average home ownership estimates in the West Region are more than $ 60,000 higher than at the end of 2020; the highest regional dollar gain so far this year. Prices in the Midwest region are $ 17,000 higher over the same period, which is the lowest absolute profit in any region.
At the national level, supply and demand remain significantly unbalanced in relation to long-term trends. The number of residential properties for sale was significantly lower in October than in October. Overall, the number of actively listed homes for sale was 40 percent below the pre-COVID October average since 2007 and more than 15 percent below October 2020, the previous low for listings in October. On the demand side, completed sales of previously listed properties declined in October, marking the fourth consecutive month of declining sales. However, the October sales numbers were the second highest ever for a month of October, taking a record 33 percent of the previous month’s total listing numbers.
Last year set a record for the volume of home sales for a calendar year. In the first 10 months of 2021, total home sales were 5 percent higher than the same period in 2020, making it likely that 2021 will hit a new record for sales volume in the United States. The combination of an all-time record sales volume with significant supply challenges continues to be the driving force behind soaring property values in 2021.
REGIONAL DATA AND TRENDS
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Most regions reported lower housing appreciation rates in October
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The western region shows the greatest decline, while the south remains the strongest
The national experience with a somewhat slower price increase was similar for most of the six regional indices. In October, the annualized price gains were lower than the previous month in four of the six regions covered. The exceptions to the slower appreciation rates were the MidAtlantic and South regions, both of which reached all-time highs for one-month appreciation rates. For the remaining four regions, October was the second strongest month of appreciation of the year. While the Midwest region saw the greatest annual growth a year ago, the South region has held the title this year. The South Region is the only region to ever see a one-month (annualized) appreciation rate of over 20 percent, and October was the second consecutive month that this was achieved.
At the state level, home price appreciation has increased in all 50 states in the past 12 months (October 2020 to October 2021), from a 4 percent increase to the strongest increase of more than 30 percent in the state of Idaho. After Idaho, Montana, Maine and Arizona saw the highest appreciation rates in the past year. In total, 41 states saw double-digit increases in median house prices.
DATES AND TRENDS OF THE METROPOLITAN AREAS
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Fewer than half of the top cities have seen faster growth in value over the past month
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Three of the top 5 cities in the South region
In October, six of the top 20 metropolitan areas (CBSAs) reported faster appreciation rates than the previous month, with Miami posting the fastest monthly appreciation rate in 2021. The South region performed best in October. In fact, three of the top 4 CBSAs were in the south last month. Boston, St. Louis, and Detroit saw the largest declines in appreciation, while Boston, Baltimore, and Minneapolis saw the slowest appreciation rates in October.
Looking at the 50 largest cities in the country, 18 of them reported faster appreciation rates in October than a month earlier. Over the past 12 months, Boise, ID, Bridgeport, CT, Austin, TX, Phoenix, AZ, and Charlotte, NC have had the fastest appreciation rates among the top 50 cities. So far, Boise has the largest dollar gain of the top 50 cities in 2021, with medians estimated to be more than $ 70,000 above the late 2020 level, helping to increase the average estimated home value.
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.
Further content on the housing market can also be found on the Radian Insights page at https://radian.com/news-and-knowledge/insights.
Red Bell offers the Radian HPI dataset 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 sets that are updated monthly.
The Radian HPI Portal is a self-service data and visualization platform that contains a library of thousands of high quality indexes based on both geographic dimensions and market or property attributes. The platform offers monthly updated access to nine different geographic dimensions, from the national level to postal codes. In addition, the Radian HPI provides unique insights into market changes, conditions, and strengths across multiple property attributes, including number of bedrooms and square footage. In order to improve customers’ understanding of granular real estate markets, the library is regularly expanded to include more informative indices.
In addition to the services offered by its subsidiary Red Bell, Radian responsibly and sustainably secures the American dream of owning a home through products and services that include industry-leading mortgage insurance and a full range of mortgage, risk, title, valuation, asset management and other real estate services . The company is technology driven, informed and driven by data to provide new and better ways for transaction and risk management.
Visit http://www.radian.com to learn how Radian is shaping the future of mortgage and real estate services.
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