Home prices rose 0.5% month over month in January, on par with December’s gain, as the drop in mortgage rates at the end of last year gave buyers a bit more purchasing power

U.S. home prices climbed 0.5% from a month earlier in January, matching the 0.5% gain seen in both December and November, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. On a year-over-year basis, prices rose 6.7%—the largest increase in a year.

This is according to the January Redfin Home Price Index (RHPI), covering the three months ending Jan. 31, 2024. Read the full RHPI methodology here.

“Price growth held steady last month because many of the home purchases that closed in January were negotiated at the end of last year, when mortgage rates posted the biggest drop since 2008. The decline in rates gave buyers more purchasing power, and for some, a sense of urgency to lock in a mortgage,” said Redfin Senior Economist Sheharyar Bokhari. “Prices also climbed because there’s still a shortage of homes for sale, which is fueling competition in some areas.”

New listings fell 1.2% month over month on a seasonally adjusted basis in January, the first drop since June, and remained far below pre-pandemic levels—contributing to the increase in prices. Listings are declining largely because many homeowners are hesitant to give up their rock-bottom mortgage rates; a majority of homeowners still have rates below current levels.

Prices Climbed Most in Montgomery County, Fell Fastest in Charlotte

In Montgomery County, PA, home prices rose 3.7% from a month earlier in January—the biggest increase among the 50 most populous U.S. metropolitan areas. Next came Philadelphia (1.9%), Baltimore (1.9%), Cleveland (1.7%) and New York (1.6%).

Thirteen metros saw price declines. In Charlotte, NC, home prices dropped 0.7% month over month—the largest decrease among the 50 most populous metros. It was followed by San Francisco (-0.6%), Austin, TX (-0.6%), San Diego (-0.5%) and Sacramento, CA (-0.4%).

To view the full report, including charts, please visit:
https://www.redfin.com/news/redfin-home-price-index-january-2024

More than forty years being associated inside the mortgage and real estate communities has taught me a great deal. Working with some of the best professionals in these areas across the country can also remind me that the more things change, the more they stay the same. I have preached here before the value of situational awareness and that the true value of any professional is providing options for their clients and sharing multiple ways of getting things done. A recent conversation with one of my clients brought back the exact same scenario I had with a client more than 30 years ago and helped me understand very deeply about how much value we can bring to the table if we just look at all the details and provide objective options!

Quite simply, the story goes like this; a couple want to sell a house and buy another one that suits their needs much better for the next stage of their lives. Having a current home that has amassed a huge amount of equity, the couple goes to an agent who starts to show them houses that fit their new objectives. They see a number of homes and locations that would work well, and then go home and start searching the internet for solutions. UGH!!!

They discover that even with putting all of their equity down on the new house, the new payments would be far too high for them and assume that their dream is dead. When their agent calls to follow up, the clients share the story, and the agent suggests that they speak to my client to discuss their options. Still holding the desire to make their move, they reach out to my client for a conversation. After looking at ALL THE NUMBERS, it became obvious that their equity would be best used to eliminate outstanding debt, thus reducing their total monthly payments. This meant that they could get the house and location they dreamed about, but also REDUCE their total monthly financial obligations by a large amount! They listed and sold their current home, paid off their debt, bought the house they loved, and reduced their total monthly obligations! 

These people would never have known what they were capable of doing if not for skilled professionals providing all their options. You must establish that value if you are going to compete against the internet and social media! Differentiation matters! Questions or comments: This email address is being protected from spambots. You need JavaScript enabled to view it.