According to a new report from Redfin, U.S. home prices ticked up 0.2% for the second consecutive month in July – the smallest month-over-month increase since January 2023.
On a year-over-year basis, home prices rose 6.8% in July, down from 7.3% in June and the lowest annual increase recorded since January.
Home prices continue to inch up to all-time highs – albeit more slowly than in previous months – because there is still a shortage of homes on the market relative to buyer demand. Mortgage rates have fallen considerably in recent weeks, but that has not yet translated into a significant increase in buyers, which in turn has prevented prices from rising more quickly.
“There aren’t enough sellers listing their homes to cause prices to fall and there aren’t enough buyers to create competition to drive prices up significantly,” says Redfin Senior Economist Sheharyar Bokhari. “Relatively low sales and gradual price increases will remain the status quo each month until one of those things changes.”
Twenty (40%) of the 50 most populous U.S. metro areas recorded a seasonally adjusted drop in home prices in July, month over month. That number is up from only four metros recording a month-over-month decline in February.
The biggest decline in July was in Austin, Texas (-1.6%), followed by San Francisco (-1.1%) and Nassau County, N.Y. (-0.7%). The highest month over month gains were recorded in Indianapolis (1.2%), Miami (1.2%) and San Antonio (1.1%).
To access the full report, click here.
