According to a recent MReport, home values have risen to the highest point since the COVID outbreak began in March of last year. The article highlights data from the Radian Home Price Index, which discovered that home prices increased 10.4% between March 2021 and April 2021. From April 2020 to April 2021, the HPI rose 9.2%. This is the fastest annual rate since before the pandemic. Radian’s SVP of Data and Analytics, Steve Gaenzler, stated “As we are now a full year from the initial COVID induced national closures of 2020, the U.S.’s strong national housing market continues to chug along in April. Pent-up demand for homes, improving economic activity, a strong labor market and low mortgage rates have been strong tailwinds for housing. However, as the U.S. starts to see growing considerations for ending or reducing government stimulus 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”. The median price for a single-family and condominium home has spiked to roughly $277,356. In addition, since the pandemic, the average home has appreciated by $20,000 or more. This rise in appreciation has increased homeowner equity levels as homeowners continue to cash in on quick home sales.
WHAT ELSE DID THE REPORT FIND?
The lack of inventory has played a role in the increase in home prices. In the past 10 out of 12 months, active listings have been decreasing. However, active listings have been increasing for the past three consecutive months. The report stated that there were 881,000 residential properties on the market in April. Over the last decade, there have been 1.4 million homes for sale on average each month. While inventory is rising, there are 40% less homes for sale than at any time in the past decade. Because of the lack of inventory, Americans who are searching for a new home have been purchasing homes in record time. Redfin revealed that single-family homes went under contract in just 19 days on average last month. In addition to the lack of houses on the market, new construction has impacted the HPI. The cost of labor and lumber is still a concern, which has caused housing starts to drop. The report highlighted that Nebraska, Arizona, Arkansas, and Mississippi have had the largest increase in home appreciation. Since the pandemic, Idaho, Montana, Georgia, and Washington have had the most consistent appreciation rates. A few states that had lower rates were North Caroline, North Dakota, Kentucky, and West Virginia.
Click here to read the full MReport and learn more!
Click here to read the full Radian report.
Click here to read the full Redfin report.
ARE YOU READY TO FIND YOUR DREAM HOME?
Contact us to get started!