Home-Price Growth Slows For Third Consecutive Month: Redfin Report

Home-price growth has decelerated for the third consecutive month, according to the Redfin Home Price Index (RHPI), signaling a potential shift in the housing market. The RHPI reported that home prices increased by a modest 0.6% in November, marking the smallest monthly rise since June. On a year-over-year basis, prices were up by 6.4%.

“It’s a better time to be a homebuyer than it was two months ago,” Redfin Senior Economist Sheharyar Bokhari said. “Buyers today have more options to choose from, which is taking pressure off of home prices. Mortgage rates dropped below 7% last week for the first time since August, shaving hundreds of dollars off monthly payments. That news seems to have lured more sellers to the market, which should further improve homebuying conditions in the new year.”

In November, new listings increased by 1.3% compared to the previous month, reaching the highest level in over a year after many homeowners decided to enter the market. Pending sales also rose by 2%, reaching the highest level in a year.

Among the 50 most populous U.S. metropolitan areas, 14 saw month-over-month price declines in November. San Antonio experienced the largest drop, with prices falling by 1.9%. Conversely, Chicago had the most substantial price increase, rising by 2.4%.

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. November data covers the three months ending Nov. 30, 2023.