Home prices still rising
Nov 8, 2021
In September, home prices appreciated nationally at an annualized rate of 17.6% from the prior month. This marks the sixth consecutive month of reporting an all-time record month-over-month rate, according to Radian Home Price Index (HPI) data released today by Red Bell Real Estate, LLC, a Radian Group Inc. company.
The Radian HPI has risen at an annualized rate of 13.9% over the nine-month period (January to September 2021), which is nearly 40% higher than the rate of the same period in 2020. Over the past year the median national estimate is 12.1% higher.
"Given the rapid rise in home prices over a relatively short period of time, the Radian HPI is constantly mining the data to find signs of a shift in current housing strength–and so far, it seems to be heading in one direction," noted Steve Gaenzler, senior vice-president of data and analytics at Radian. "While there are some indications that affordability may be starting to place strain on certain home buyers, the limited supply is a strong support for home price growth."
Ultimately, Gaenzler said, while bidding wars may be reducing in frequency, sellers are still receiving above list price offers in many situations.
Nationally, the median estimated price for single-family and condominium homes rose to $294,488. Since the onset of the pandemic in March 2020, homes across the U.S. have appreciated, on average, by more than $41,000 significantly adding to borrower home equity for mortgage holders.
However, while falling listing counts is not uncommon in the U.S. after the summer season, the number of homes actively listed for sale in the U.S this month stood at the lowest level for any ninth month (September) over the last 13 years. In contrast to the continued shortage of available properties for sale, and despite the significant increase in home prices recently, the demand for properties continues to grow.
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