U.S. home prices rose at an annualized rate of 10.7% in the first six months of the year, 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 also rose 10.2% year-over-year (July 2020 to June 2021), which was slightly higher than the year-over-year increase of 9.9% recorded last month.
The annualized increase continues the record-breaking annualized yearly gains seen in recent months. 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 regions.
“In our last release, the Radian HPI reported that home prices grew at the fastest annual rate in over a decade and a half, and that momentum has not stopped yet,” noted Steve Gaenzler, senior vice president of data and analytics. “During the second quarter, mortgage rates fell by 30 basis points and economic growth accelerated helping to further elevate home prices nationally. It is safe to say that all talk of the reemergence of a ‘buyers’ market’ is not yet supported by the most recent home price data.”
Historically, the spring months help build inventory for the summer season. In the ten years from 2010 to 2019, the lightest month of national listing volume (December) averaged 1.3 million listed properties while the mid-point of the year (June) averaged 1.6 million listed properties.
While listing activity has increased in each of the most recent four months, the June 2021 listing inventory was just over 968,000 units, more than 500,000 fewer units than the June historical average.
“Taken in historical context, the recent increases in supply represent a very small consolation to buyers when compared to existing price increases,” added Gaenzler.