Indicating a slowdown in price appreciation, U.S. home prices on average nudged up just a little — 0.2% — from February to March on a seasonally adjusted basis, according to a new report from tech-powered real estate brokerage Redfin.
That’s the slowest overall growth rate in 15 months since December 2022, the company noted. Home prices were up 4.6% on an annual basis, which is down about 11% from 5.1% year-over-year growth in February.
Yet, as with many things real estate and mortgage, the truer story is local. Home prices fell in two-fifths of the 50 most populous U.S. metro areas on a seasonally adjusted basis from February to March.
The biggest declines in home prices were in:
- Columbus, Ohio, where home prices fell by 0.7%,
- Denver, Colo., where home prices fell by 0.6%, and
- San Jose, Calif., where home prices fell by 0.6%.
Meanwhile, home prices increased most in:
- San Francisco, Calif., where home prices rose 2.7%,
- Nassau County, N.Y., where home prices rose 2.6%, and
- Milwaukee, Wisc., where home prices rose 1.7%.
Price growth is slowing overall, Redfin stated, because homebuying demand isn’t keeping up with the rising number of homes for sale — and it could mean good things for those looking to purchase.
“Homes are taking longer to sell and prices are falling in some areas because fear of a broader economic slowdown is pushing many would-be buyers to the sidelines,” Redfin Senior Economist Sheharyar Bokhari stated in a release.
“New tariffs are adding to the economic uncertainty and prices may slow even further in coming months,” Bokhari added. “With housing costs at near-record highs, that’s a silver lining for a buyer who has to move right now, as there will be more room for negotiation.”
March’s year-over-year home price growth rate marks the 11th consecutive month that annual growth has slowed, Redfin noted, and the first time it’s dropped below 5% since August 2023.
These figures all are from the Redfin Home Price Index (RHPI), which measures homes’ sale prices during a given period, mapping out how those prices change since the prior time those same homes sold.
Redfin emphasized that the RHPI has recorded month-over-month price declines only on two occasions, both of them in mid-2022, “when spiking mortgage rates cooled the market dramatically.” Since then, most months have seen gains in the 0.4% to 0.6% range.
