U.S. home prices rose 0.6% from a month earlier, the smallest increase since June, as a jump in homes for sale gave buyers more options
(NASDAQ: RDFN) — The Redfin Home Price Index— which is similar to but more current than the Case-Shiller price index—showed that U.S. home-price growth slowed for the third straight month in November. This is according to a recent report from Redfin (redfin.com), the technology-powered real estate brokerage.
Home prices were up 0.6% from October, the smallest monthly increase since June, and were up 6.4% from a year earlier.
“It’s a better time to be a homebuyer than it was two months ago,” said Redfin Senior Economist Sheharyar Bokhari. “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.”
New listings climbed 1.3% month over month in November to the highest level in over a year on a seasonally adjusted basis as homeowners got tired of waiting on the sidelines, providing relief to buyers who have been grappling with an historic shortage of homes for sale. Pending sales also rose, increasing 2% month over month to the highest level in a year.
This month, new listings have been climbing even faster, and Redfin has seen double-digit year-over-year increases in the number of homeowners contacting our agents to inquire about listing. On the buy-side, mortgage purchase applications have been rising on a seasonally adjusted basis as mortgage rates have come down.
Prices Fell Most in San Antonio, Rose Most in Chicago
Fourteen of the 50 most populous U.S. metropolitan areas posted month-over-month price declines in November. In San Antonio, prices fell 1.9%—the biggest drop among the metros Redfin analyzed. Next came Minneapolis (-1.3%), Austin, TX (-1.3%), Warren, MI (-1%) and Sacramento, CA (-0.7%).
In Chicago, home prices rose 2.4% month over month—the largest increase among the 50 most populous metros. Rounding out the top five are Newark, NJ (2.1%), New York (1.9%), Pittsburgh (1.5%) and Las Vegas (1.3%).
The Redfin Home Price Index (RHPI) 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. November data covers the three months ending Nov. 30, 2023. Read the full RHPI methodology here.
To view the full report, including a chart and more metro-level data, please visit: https://www.redfin.com/news/redfin-home-price-index-november-2023/
About Redfin
Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, title insurance, and renovations services. We also run the country's #1 real estate brokerage site. Our home-buying customers see homes first with same day tours, and our lending and title services help them close quickly. Customers selling a home in certain markets can have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Customers who buy and sell with Redfin pay a 1% listing fee, subject to minimums, less than half of what brokerages commonly charge. Since launching in 2006, we've saved customers more than $1.5 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 4,000 people.
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here.
View source version on businesswire.com: https://www.businesswire.com/news/home/20231219951260/en/
Contacts
Redfin Journalist Services:
Isabelle Novak, 414-861-5861
press@redfin.com
