Home prices in the United States experienced a steady increase of 0.5% in November, marking the third consecutive month of growth at this rate. This consistent rise comes as part of a broader trend observed throughout 2024, where prices have grown annually by 5.7%, the smallest annual increase recorded since October 2023.
The increase in home prices was measured using the Redfin Home Price Index (RHPI), which utilizes the repeat-sales pricing method to calculate seasonally adjusted changes specifically for single-family homes. The data covered the three months ending November 30, 2024, and highlighted a slowdown in annual price growth over recent months. This slowdown mirrors the pace experienced in 2019, before the pandemic-induced surge that saw prices soar by up to 21.7% year over year by March 2022.
In particular, 13 out of the 50 largest U.S. metropolitan areas recorded a month-over-month decline in home prices. The Fort Lauderdale and Tampa areas in Florida both experienced a 1.1% drop, alongside a 1% decrease in San Diego. Conversely, areas like Nassau County, NY, Charlotte, NC, and Minneapolis showed significant monthly gains of 1.6%, 1.4%, and 1.3% respectively.
Redfin Senior Economist Sheharyar Bokhari provides insight into the ongoing trends, predicting that home prices will continue to rise steadily throughout 2025. This projection is attributed to elevated mortgage rates, which encourage many homeowners to retain their properties to benefit from the lower rates they locked in previously. This situation consequently results in a relatively low number of homes available for a high number of potential buyers, thereby maintaining price growth.
Despite the moderation in annual growth rates, the U.S. housing market remains robust, with a steady month-over-month increase in home prices. Moving forward, the dynamics of supply and demand, coupled with current mortgage rates, are expected to sustain this trend into 2025.
Source: Redfin
