Radian Home Price Index accelerated to fastest annual rate due to lack of supply
Annual home price growth in the US accelerated to a 9.2% rate – the fastest 12-month rate recorded since before the COVID-19 outbreak.
Month over month, the national median estimated price for single-family and condominium homes rose by 10.4% to $277,356 in April, according to the Radian Home Price Index (HPI). Since the start of the pandemic lockdowns in March 2020, the average home in the US has appreciated by more than $20,000. Home price growth over the past year has increased homeowner equity levels by more than $1.5 trillion.
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“As we are now a full year from the initial COVID induced national closures of 2020, the US’s strong national housing market continues to chug along in April,” said Steve Gaenzler, senior vice president of data and analytics at Radian.
Gaenzler explained that pent-up demand for homes, improving economic activity, a strong labor market and low mortgage rates continue to propel home prices.
After months of declines, active listings have increased in the past three consecutive months, although only by 32,000 units from the month before. More than 881,000 residential properties were for sale in April – the fifth month with less than one million properties listed nationally. That is compared to the average 1.4 homes on the market every month over the last decade. Active listings are currently 40% lower than they were at any time over the past 10 years.
“As the US starts to see growing considerations for ending or reducing government stimulus (monetary and fiscal) in the coming months, and concerns of higher potential inflation making headlines, there is a need to keep a very close eye on housing in the coming half year,” Gaenzler said.
