U.S. home prices grew 0.5% in August on a seasonally adjusted basis, the largest month-over-month increase since April, according to Redfin, the technology-powered real estate brokerage. On a year-over-year basis, home prices rose 6.7%, the lowest annual increase since January.
Home prices continue to rise in part because there aren’t enough homes for sale. Housing supply is up 16.7% from a year ago, but is still down almost 30% from pre-pandemic levels.
“Prices kept creeping up during this unusually slow summer for home sales as mortgage rates came down and supply remained stubbornly low,” said Redfin Senior Economist Sheharyar Bokhari. "If mortgage rates fall further this fall – and we expect they will – price growth will likely pick up as more prospective homebuyers come off the sidelines."
Mortgage affordability could improve as soon as tomorrow, depending on how much the Federal Reserve cuts interest rates.
Metro-Level Summary: Redfin Home Price Index, August 2024
Twenty (40%) of the 50 most populous U.S. metro areas recorded a seasonally adjusted drop in home prices in August, month over month.
The biggest decline in August was in San Antonio, TX (-2.4%), followed by Warren, MI (-0.9%) and Oakland, CA (-0.7%). The highest month over month gains were recorded in Philadelphia (1.5%), Detroit (1.3%), and Providence, RI (1.2%).
