- U.S. home prices decreased by 0.1% in April, marking the first monthly drop since September 2022.
- Home prices increased by 4.1% annually, the slowest growth rate since July 2023.
- Half of the 50 largest U.S. metro areas experienced a decline in home prices in April.
According to a report by Redfin (RDFN, Financial), U.S. home prices saw a slight decline of 0.1% in April on a seasonally adjusted basis. This marks the first month-over-month decrease since September 2022, reflecting a potential cooling in the housing market. The annual home price growth also decelerated to 4.1%, down from 4.9% in March, reaching the lowest rate since July 2023.
The Redfin Home Price Index (RHPI), which measures seasonally adjusted changes in the prices of single-family homes, indicates this is only the third time a monthly decline has been recorded since August and September 2022. These earlier declines followed rapid interest rate hikes.
The report highlights that home prices fell in 25 of the 50 most populous metro areas on a seasonally adjusted basis in April. The most significant price decreases were observed in Charlotte, NC (-1%), Virginia Beach, VA (-1%), and Miami (-0.7%). Conversely, prices increased in Nassau County, NY (1.8%), Warren, MI (1.3%), and New York (1.2%).
Redfin's Senior Economist Sheharyar Bokhari indicated that flat home prices, coupled with elevated mortgage rates, present affordability challenges for buyers, causing many to remain on the sidelines. The market also saw a 3.5% decline in pending home sales month-over-month due to increased supply, with homes not selling and sellers offering concessions at near-record levels.
Redfin, a technology-powered real estate brokerage, continues to provide insights and data through the Redfin Data Center. For more detailed information on the housing market trends, visit their website at redfin.com.
