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Home Price Appreciation Slows in All Regions

According to new data from the Radian Home Price Index (HPI) — released by Red Bell Real Estate, LLC, a Radian Group Inc. company — home prices rose nationally from the end of January 2022 to February 2022 at an annualized rate of +11.3%.

In February, home prices across the U.S. rose at a slower pace than in January, but continued to appreciate at higher rates compared to the same time last year.

February 2021 marked the last month that national home prices appreciated by less than 10%. From then on, the U.S. housing market has witnessed a high-volume series of twelve consecutive months of annualized monthly home price appreciation of more than 10%. As a result, the median home price of all homes in the U.S. has risen by more than $41,000 in just a year.

“After peaking last September, home price appreciation rates have slowed during the fall and winter months,” said Steve Gaenzler, SVP of Products, Data and Analytics. “The remainder of 2022 will likely pit opposing forces—the desired return to normalcy and spending that will come with the ending of the pandemic, and the increased cost of homeownership that has resulted from higher mortgage rates, inflation, and prior home price gains.”

“Ultimately, housing markets large and small across the country have proven that homeownership is a wealth creator that supports the “American Dream,” even in challenging times,” added Gaenzler.

National data and trends

  • Median home price in the U.S. rose to $313,530
  • Home prices rose an annualized 13.9% over the last three months

Nationally, the median estimated price for single-family and condominium homes rose to $313,530. Across the U.S., home prices nationally rose 16.1% over the last six months, a strong increase over the prior six-month appreciation rate of just 13.2%.

“While the future is unknown, millions of Americans saw their home value increase during a time of great personal and economic stress,” said Gaenzler. “The median-priced homeowner in the U.S. gained approximately $62,000 in wealth since the onset of the pandemic closures in March of 2020.”

Even during the winter months, when family-centric housing transactions are typically slow, demand remained historically strong, and housing supply remained at all-time lows.

Data also finds millennials, the largest segment of the U.S. population, are now in the traditional home buying age. Growth in other forms of housing, such as single-family rental homes, also continues to rise, adding even more competitive pressure on home prices in certain markets.

“Ultimately, housing markets large and small across the country have proven that homeownership is a wealth creator that supports the “American Dream,” even in challenging times,” said Gaenzler.

Regional data and trends

  • February reported slower appreciation in all regions
  • Northeast and Midwest softened while South and Southwest stayed firm

The South and Southwest were particularly strong as populations grew in these areas from out-of-state transplants and strong demand from corporate sponsors of single-family rentals. In what are normally considered down months for housing activity, the Northeast and Midwest, slowed the most. Overall, all U.S. regions reported slower price appreciation in residential markets in February 2022.

At the state level, home price appreciation slowed compared to the prior month in 46 of the 50 states and the District of Columbia. Only five states saw numbers rise regarding appreciation:

  • Florida
  • Hawaii
  • Louisiana
  • Maryland
  • Rhode Island

Metropolitan area data and trends

  • Largest metropolitan areas outperformed smaller or rural areas in February
  • Miami continues to outshine local markets

Of the 20-largest metro areas of the U.S., all of them reported positive price appreciation in February compared to January 2022. Seattle, Tampa Bay, and San Diego, recorded the fastest price appreciation. Boston, Chicago ,and New York city produced the weakest appreciation of all regions.

South Florida has also witnessed an uptick in in-migration, attracting many from outside the region. As a result, the Miami metro area reported a record high monthly appreciation rate in February 2022 — a number higher than any time before, during or after the pandemic.

In just the first two months of 2022, the average median estimated home price of homes in the 20-largest metros was higher by almost $6,400 — nearly 30% higher than the estimated increase of $5,000 in the first two months of 2021.

Overall, the Radian HPI rose an estimated 15% year-over-year from February 2021 to February 2022. In comparison, the year-over-year period from February 2020 through February 2021 recorded an 8.3% increase.

To read the full report, including charts and methodology, click here.

 

About Author: Demetria Lester

Demetria C. Lester is a reporter for DS News and MReport, with more than six years of writing experience. She has served as Editor-in-Chief at Northlake College and staff writer at her alma mater, the University of Texas at Arlington. She has covered events such as the Byron Nelson, Pac-12 Conferences, the Women in Dallas Film Festival, to freelance work with the Dallas Wings and D Magazine. Currently located in Dallas, Texas, she is an avid jazz lover and reader. She can be reached at [email protected]
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