- Home prices grew 0.2% in June, the slowest pace since January 2023.
- Home price growth slowed in June for the fourth consecutive month.
- Falling mortgage rates and relatively low inventory levels are likely to keep prices ticking up slowly in coming months.
U.S. home prices rose 0.2% in June, the smallest month over month increase since January 2023 on a seasonally adjusted basis. Prices in June were still up 6.9% from a year earlier, the lowest annual growth since January.
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. June data covers the three months ending June 30, 2024. Read the full RHPI methodology here.
Home prices keep setting record highs, even as fewer buyers compete with one another due to elevated mortgage rates. The rate of price growth, however, has been slowing each month since February.
“Even though price growth has been slowing down, falling mortgage rates and lower-than-usual inventory levels are likely to keep prices ticking up in the coming months,” said Redfin Senior Economist Sheharyar Bokhari. “The Redfin Home Price Index has only fallen twice in its 12 year history—in August and September 2022, when mortgage rates and inventory spiked significantly. Those things are unlikely to happen this year.”
Metro-Level Summary: Redfin Home Price Index, May 2024
More than a third (19) of the 50 most populous U.S. metro areas recorded a seasonally adjusted drop in home prices in June, month over month. The biggest decline was in Nassau County, NY (-3.1%), followed by Austin, TX (-1.7%), West Palm Beach, FL (-1.1%) and Philadelphia (-1.1%).
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