U.S. Home Prices Rise During First Six Months of Pandemic, Radian Home Price Index Reveals
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 …