On a year-over-year basis, home prices rose 6%, the smallest annual increase since December
U.S. home prices grew 0.5% from a month earlier in September on a seasonally adjusted basis, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. That’s the fastest pace since April and the third consecutive month where the growth rate has increased.
On a year-over-year basis, home prices rose 6%, the lowest annual increase since December. This is according to the Redfin Home Price Index (RHPI), which uses the repeat-sales pricing method to calculate seasonally adjusted changes in prices of single-family homes. The RHPI measures sale prices of homes that sold during a given period, and how those prices have changed since the last time those same homes sold.
Mortgage affordability improved in September when rates dropped as low as 6.08%, but home prices are continuing to tick up because demand outweighs supply.
“There are around 20% fewer homes on the market today than there were five years ago, mainly because so many homeowners locked in a low mortgage rate during the pandemic,” said Redfin Senior Economist Sheharyar Bokhari. “With mortgage rates back above 6.5% this month—and unlikely to drop below 6% this year—home prices will likely continue their consistent climb until more inventory comes onto the market in the spring.”
Metro-Level Summary: Redfin Home Price Index, September 2024
Thirteen of the 50 most populous U.S. metro areas recorded a seasonally adjusted drop in home prices in September, month over month.
The biggest decline in September was in San Antonio, TX (-1%), followed by Fort Lauderdale, FL (-0.9%) and Fort Worth, TX (-0.5%). The highest month over month gains were recorded in Nassau County, NY (1.7%), Philadelphia (1.6%) and Virginia Beach, VA (1.4%).
To view the full report, including a chart and additional metro-level data, please visit: https://www.redfin.com/news/home-price-index-september-2024
