U.S. Home Prices Gains Higher Compared to Prior Month, Radian Home Price Index Reveals

Home prices across the United States rose at an annualized rate of 11.5 percent in May 2021 from April 2021, according to Radian Home Price Index (HPI) data released today by Red Bell Real Estate, LLC, a Radian Group Inc. company (NYSE: RDN). The company believes the Radian HPI is the most comprehensive and timely measure of U.S. housing market prices and conditions available in the market today.

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Radian Home Price Index (HPI) Infographic June 2021 (Graphic: Business Wire)

The Radian HPI also rose 9.9 percent year-over-year (May 2020 to May 2021), which was slightly higher than the year-over-year increase of 9.3 percent recorded last month. 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.

“Unlike repeat sales or median price based indices, the Radian Home Price Index generates an estimated value on nearly all homes that make up the U.S. housing stock, every month, providing us a broader and more realistic view of home price changes,” noted Steve Gaenzler, SVP of Data and Analytics. “While home prices have been growing at higher than typical levels, recent reports of annual home prices being higher by 20 percent or more nationally do not represent the entire housing market, but rather the small segment of properties actually sold. This is an incomplete measure of understanding household wealth and equity. These measures only look at the median price of homes sold, not the estimated price change on all homes, including the majority of homes that are not currently on the market. As such, the changing mix of sales will influence the rates of increase reported in these other measures,” added Gaenzler.

NATIONAL DATA AND TRENDS

• Median home price in the U.S. rose to $280,002
• Percentage of lower priced homes sold fell to lowest on record.

Nationally, the Radian HPI estimated the median price for single-family and condominium homes rose to $280,002. Across the U.S., home prices nationally rose 11.5 percent over the last three months, slightly higher than the 10.5 percent reported for the three months from February through April. The impact of higher vaccination rates, job growth and more interest in homeownership appears to have increased the rate of appreciation. Moreover, it is common for home prices to accelerate their growth momentum into the summer season.