U.S. Home Prices Are Rising at the Slowest Pace in Nearly a Year and a Half
18 June 2024 - 10:00PM
Business Wire
Redfin reports price growth is slowing thanks
to a small uptick in new listings as elevated mortgage rates keep
buyers at bay
(NASDAQ: RDFN) — U.S. home prices rose 0.3% month over month in
May—the smallest increase on a seasonally adjusted basis since
January 2023, per a new report from Redfin (redfin.com), the
technology-powered real estate brokerage. Prices climbed 7.2% from
a year earlier, but annual growth showed signs of plateauing.
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. It’s similar to the S&P CoreLogic Case-Shiller Home Price
Indices but publishes more than one month earlier. May data covers
the three months ending May 31, 2024.
While home prices remain at record highs, the pace at which
they’re growing has slowed because even though we’re still in a
severe housing shortage, it’s not quite as severe as it was last
year. New listings have been inching upward, which has taken a
little pressure off of sale prices because buyers have more options
to choose from. Listings should continue to tick up slowly as the
mortgage rate lock-in effect continues to wear off; eventually, the
people who don’t want to move because they have an ultra-low
mortgage rate have to move.
“We learned last week that inflation continued to cool in May,
which means mortgage rates could decline in late summer or early
fall,” said Redfin Economics Research Lead Chen Zhao. “A drop in
mortgage rates would bring both buyers and sellers back to the
market, which could either accelerate price growth or pull it back
depending on who comes back with more force. If sellers come back
faster, prices would likely cool, but if buyers come back faster,
prices would likely ramp up.”
New listings rose 0.3% month over month in May on a seasonally
adjusted basis and climbed 8.8% from a year earlier, though they
were still roughly 20% below pre-pandemic levels.
Home price growth started to ease at around the same time that
new listings started to tick up last year; new listings saw their
first notable increase in August 2023, and monthly price growth
began cooling during the three months ending Oct. 31, 2023.
To view the full report, including charts and metro-level data,
please visit:
https://www.redfin.com/news/home-prices-smallest-increase-over-a-year
About Redfin
Redfin (www.redfin.com) is a technology-powered real estate
company. We help people find a place to live with brokerage,
rentals, lending, title insurance, and renovations services. We run
the country's #1 real estate brokerage site. Our customers can save
thousands in fees while working with a top agent. Our home-buying
customers see homes first with on-demand tours, and our lending and
title services help them close quickly. Customers selling a home
can have our renovations crew fix it up to sell for top dollar. Our
rentals business empowers millions nationwide to find apartments
and houses for rent. Since launching in 2006, we've saved customers
more than $1.6 billion in commissions. We serve more than 100
markets across the U.S. and Canada and employ over 4,000
people.
Redfin’s subsidiaries and affiliated brands include: Bay Equity
Home Loans®, Rent.™, Apartment Guide®, Title Forward® and
WalkScore®.
For more information or to contact a local Redfin real estate
agent, visit www.redfin.com. To learn about housing market trends
and download data, visit the Redfin Data Center. To be added to
Redfin's press release distribution list, email press@redfin.com.
To view Redfin's press center, click here.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240618338682/en/
Contact Redfin Redfin Journalist Services: Ally Braun,
206-588-6863 press@redfin.com
Redfin (NASDAQ:RDFN)
Historical Stock Chart
From Aug 2024 to Sep 2024
Redfin (NASDAQ:RDFN)
Historical Stock Chart
From Sep 2023 to Sep 2024