Home prices in the United States end the first half of the year on a high note, homegenius home price index reveals
WAYNE, Pa.–(BUSINESS WIRE)–U.S. home prices rose in the first six months of the year at an annualized rate of 15.5%, according to data from the homegenius Home Price Index (HPI) released today today by homegenius Real Estate LLC, a Radian Group Inc. (NYSE: RDN) company. The Company believes that the homegenius HPI is the most comprehensive and timely measure of US housing market prices and conditions available in the marketplace today.
The homegenius HPI also increased by 16.9% year-over-year (July 2021 to June 2022), which is slightly higher than the year-over-year increase of 16.3% recorded last month. The annualized increase represents a continuation of the record annualized annual gains of recent months. The homegenius HPI is calculated based on the estimated values of over 70 million unique addresses each month, covering all types of single-family properties and all geographies.
“The United States continues to struggle with a severe housing shortage, which has offset the impact of rapidly rising mortgage rates and falling stock markets. As affordability issues have grown even more prominent over the past six months, pent-up demand for homes has caused prices to continue to rise. As inventory began to rise, last month we saw the lowest level of homes for sale of any June in the past 15 years,” said Steve Gaenzler, senior vice president of product, data and analytics. “However, some relief for potential buyers could thankfully be on the horizon. There are signs that the open house and bidding wars have slowed, bringing many markets back from the frenzy to a more normal pace and healthier.
NATIONAL DATA AND TRENDS
Median US home price rose to $330,776 in June
Home prices rose 17.6% at an annualized rate in the second quarter
Nationally, the estimated median price of single-family homes and condominiums rose to $330,776 in June from the $325,684 recorded in May. In the United States, house prices rose 17.6% in the second quarter, a solid increase from the 12.9% gain recorded in the first quarter.
In the United States, demand for homes remains healthy given the supply problems. June 2022 recorded 312,000 real estate closures. This is the lowest level of sales in the month of June since 2014. However, to put this in historical context, the uptake rate (measured as the number of sales as a percentage of active listings from the previous month) was by 34.8% in June, the second highest of all June and only lower than 39.5% in June 2021. Homes continue to sell in record time. Nationally, the number of days from listing to close fell to 66 days, the lowest number of days on record in June and the third consecutive month of less than 70 days.
REGIONAL DATA AND TRENDS
The results for the first half of 2022 are very positive for all regions
Regional appreciation rates slowed from the previous quarter
In the first half of 2022, all six regional indices recorded positive rates of house price appreciation above 10.0% (annualised). The South and the Southwest had the best first half of the year, registering an annualized appreciation of 21.8% and 16.5% respectively. The other four regions ranged from 10.9% (Midwest) to 12.7% (MidAtlantic). Compared to the last six months of 2021, all regions except the South saw a slower annualized appreciation. Based on recent appraisal data, the median-priced US home has gained over $20,000 in equity so far in 2022. Even as the most expensive region, with a median estimate of over $580 $000, the West recorded an annualized appreciation of almost 12%. in the first half of 2022.
In the South, home prices in hot markets for remote work offshoring, such as the Carolinas, Georgia and Florida, led the region in appreciation rates in the first half of the year. . Each of these states ended the first six months with annualized price growth of more than 20%.
The estimated median price of a home in Florida, the fastest growing state in the United States this year in terms of price]was $330,975 at the end of June, increasing by nearly +$80,000 in last year only. In contrast, Idaho, once a darling of state house price appreciation, struggled in the last quarter and ended the second quarter with an estimated median house price lower than at the end of the Q1, the first negative quarter at the state level for home price appreciation since the start of the pandemic.
DATA AND TRENDS ON THE METROPOLITAN AREA
Metropolitan areas end the quarter on a positive note
All of the largest basic statistical domains (ASFC) had better T2 than T1
In the first six months of 2022, all of the largest metropolitan areas in the United States saw faster rates of price appreciation than in the first quarter. However, in June, only 9 of the 20 largest metropolitan areas recorded higher annual appreciation rates than the previous month. The other 11 saw slower appreciation rates month over month. Of the 11 metros registering a weaker month in June compared to May, six of them were Mid-Atlantic (3) or Southwest (3) metros. The strongest metropolis in the second quarter was Tampa, Florida, although recent month-over-month data suggests the market may be weakening.
ABOUT HOMEGENIUS HPI
homegenius Real Estate LLC, a subsidiary of Radian Group Inc., provides national and regional indexes for download at homegenius.com/hpias well as information on how to access the full library of indexes.
homegenius offers the HPI data set as well as a client access portal for content viewing and data extraction. The engine behind homegenius HPI has created over 100,000 unique data sets, which are updated on a monthly basis.
The HPI homegenius 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 market or property attributes. The platform provides monthly updated access to nine different geographic dimensions, from country level down to postal codes. Additionally, the HPI homegenius provides unique insights into market changes, conditions, and strength across multiple property attributes, including number of bedrooms and living area. To help improve clients’ understanding of granular real estate markets, the library is regularly expanded to include more insightful indexes.
homegenius Inc., a subsidiary of Radian Group Inc. (NYSE: RDN), and its family of companies combine a range of securities, real estate and technology products and services into a full-service ecosystem. homegenius delivers innovative experiences from research to closing, enabling mortgage lenders, mortgage and real estate investors, consumers, GSEs, and real estate brokers and agents to benefit from integrated and personalized solutions leveraging cutting-edge technology and the latest advances in data science, machine learning and artificial intelligence. Geniusprice is provided by homegenius Real Estate LLC, doing business as Red Bell Real Estate, LLC in certain states where name change approvals are pending. For more information about the homegenius family of companies, please visit homegenius.com.