U.S. Home Prices Grew 0.5% in September, the Fastest Pace Since April

• Home prices grew 0.5% month over month in September, the fastest pace since April.
• On a year-over-year basis, home prices rose 6%, the smallest annual increase since December.
• 13 of the 50 most populous U.S. metros recorded a drop in home prices month over month.

U.S. home prices grew 0.5% from a month earlier in September on a seasonally adjusted basis.  That’s the fastest pace since April and the third consecutive month where the growth rate has increased.

On a year-over-year basis, home prices rose 6%, the lowest annual increase since December. 

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This is according to the Redfin Home Price Index (RHPI), which 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. It’s similar to the S&P CoreLogic Case-Shiller Home Price Indices but is published more than one month earlier. September data covers the three months ending September 30, 2024. Read the full RHPI methodology here.

Mortgage affordability improved in September when rates dropped as low as 6.08%, but home prices are continuing to tick up because demand outweighs supply. 

“There are around 20% fewer homes on the market today than there were five years ago, mainly because so many homeowners locked in a low mortgage rate during the pandemic,” said Redfin Senior Economist Sheharyar Bokhari. “With mortgage rates back above 6.5% this month—and unlikely to drop below 6% this year—home prices will likely continue their consistent climb until more inventory comes onto the market in the spring.”  

Metro-Level Summary: Redfin Home Price Index, September 2024

Thirteen of the 50 most populous U.S. metro areas recorded a seasonally adjusted drop in home prices in September, month over month. 

The biggest decline in September was in San Antonio, TX (-1%), followed by Fort Lauderdale, FL (-0.9%) and Fort Worth, TX (-0.5%). The highest month over month gains were recorded in Nassau County, NY (1.7%), Philadelphia (1.6%) and Virginia Beach, VA (1.4%).

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