Since March 2020, homes have appreciated by
$88,000, on average
Home prices across the United States continued to climb in
August, although at a significantly slower rate than in prior
months, rising at an annualized 12.0 percent from the prior month.
This marks the second consecutive month of slowing month-over-month
appreciation, according to homegenius Home Price Index (HPI) data
released today by homegenius Real Estate LLC, a Radian Group Inc.
company (NYSE: RDN). The company believes the homegenius HPI is the
most comprehensive and timely measure of U.S. housing market prices
and conditions.
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the full release here:
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homegenius Home Price Index (HPI),
September 2022 (Graphic: Business Wire)
After setting an all-time high for monthly appreciation at 18.8
percent in June 2022 (annualized), appreciation rates have tempered
significantly, slowing more than 35 percent from that peak.
Appreciation rates often ebb in winter months of slower housing
activity, but typically rise during the more active, summer buying
season. The homegenius 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.
“Over the last two months, the impact of major increases in
mortgage rates and inflation have finally been realized in the
slowing rate of home price appreciation. It is once again clear
that home prices are not impervious to the broader economic
conditions around the country,” noted Steve Gaenzler, SVP of
Products, Data and Analytics for homegenius Real Estate. “However,
the rate of appreciation is still well above the historical norm,
at more than 12 percent month-over-month. While it is likely that
appreciation rates will continue to drop, homeowners’ equity
remains at all-time highs and inventory remains tight.”
Home prices have risen at an annualized rate of 8.0 percent over
the last six months (February 2022 to August 2022), and 15.9
percent over the last three months.
NATIONAL DATA AND TRENDS
- Median estimated home price in the U.S. rose to $338,692
- Home price appreciation remains well above historic
averages
Nationally, the median estimated price for single-family and
condominium homes rose to $338,692. Since the onset of the U.S.
pandemic thirty months ago, homes across the U.S. have appreciated,
on average, by more than $88,000, significantly reducing leverage
and increasing wealth through home equity. Home prices have
appreciated by 16.7 percent over the last 12 months and 8.0 percent
over the last six months.
Recent data show that the record rates of appreciation during
the pandemic appear to be waning quickly. Over the last month,
price appreciation slowed to 12.0 percent. While that is
significantly slower than the prior month’s 16.5 percent
appreciation, August home price appreciation actually matches the
average monthly appreciation rate since the start of the pandemic,
30 months ago.
This month’s annualized rate of appreciation does, however,
represent the slowest appreciation rate since March 2022 (11.3
percent). The outsized and unsustainable appreciation rates
recorded nationally during the pandemic should continue to revert
towards normal, longer-term appreciation rates, although continued
shortage of inventory and some regional outliers, should prolong
higher than average national appreciation rates.
REGIONAL DATA AND TRENDS
- All Regions appreciated more slowly in August
- Greatest slowdown found in West and South
In August, all six of our regional indices recorded slower home
price appreciation rates relative to the prior month. The
MidAtlantic and Northeast markets were the strongest performers
last month, while the West and South showed the strongest slowdown
in appreciation.
There were slightly more than 1.01 million properties listed for
sale in August, which was the second-lowest level of inventory for
any August over the last decade, and 40 percent lower than the
average level of August listings over the last 15 years (1.4mm). To
date, the homegenius HPI is not seeing increases in inventory large
enough to independently create downward pressure on home
prices.
Roughly 290,000 homes were purchased in August, in comparison to
278,000 in July. While August is often the highest sales month,
this year the pace of combined sales for July and August was much
lower than is typical for the busy summer home-buying season. The
last time a summer month (June, July, or August) reported less than
278,000 sales was in 2014. This year, the average sales per month
in the summer months was 293,000. This makes 2022 an outlier in how
quickly it has slowed in comparison to both historical levels and
2021, which set an all-time record for monthly buying activity.
METROPOLITAN AREA DATA AND TRENDS
- Appreciation rates slower in all major cities over last two
months
- San Francisco records slowest appreciation rate of largest
cities
All 20 largest metro areas in the U.S. recorded slower annual
price appreciation in August than in July. The largest decline was
in San Francisco, which dropped to just 1.3 percent appreciation
(annualized) in August. Los Angeles had the second-slowest
appreciation rate of large, metropolitan cities, with a 5.7 percent
increase month-over-month.
In contrast, cities in Texas and Florida fared the best of large
metropolitan areas. Florida cities on both coasts recorded
appreciation rates above 15 percent (Tampa 16.3%, Miami 16.5%)
relative to the prior month. On average, the top 20 largest metros
increased by 9.8 percent in July. Over the last year, the average
large metro increase was 12.6 percent.
ABOUT THE HOMEGENIUS HPI
homegenius Real Estate LLC, a subsidiary of Radian Group Inc.,
provides national and regional indices for download at
homegenius.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 homegenius and Radian News and Insights pages.
homegenius offers the HPI data set along with a client access
portal for content visualization and data extraction. The engine
behind the homegenius HPI has created more than 100,000 unique data
series, which are updated on a monthly basis.
The homegenius 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 homegenius HPI
provides unique insights into market changes, conditions and
strength across multiple property attributes, including bedroom
count and livable square footage. To help enhance customers’
understanding of granular real estate markets, the library is
expanded regularly to include more insightful indices.
homegenius Inc. and its family of companies combine an array of
title, real estate and technology products and services into a
full-service ecosystem. homegenius offers innovative experiences
from search to close, enabling mortgage lenders, mortgage and real
estate investors, consumers, GSEs, and real estate brokers and
agents to benefit from integrated and personalized solutions
leveraging advanced technology and the latest advancements in data
science, machine learning and artificial intelligence. Real estate
services, provided by homegenius Real Estate LLC, dba homegenius
Real Estate, a wholly owned subsidiary of homegenius Inc. 7730
South Union Park Avenue, Suite 400, Midvale, UT 84047. Tel:
1-877-500-1415. homegenius Real Estate LLC and its wholly owned
subsidiary are licensed in every state and the District of
Columbia. For additional information on the homegenius family of
companies, please visit homegenius.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20220930005083/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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