- Home prices grew 0.6% month over month in January, equal to the quickest pace since November 2023.
- On a year-over-year basis, home prices rose 5.4%—the slowest pace since August 2023.
- Ten of the 50 most populous U.S. metros recorded a drop in home prices month over month, led by Tampa (-1.6%).
U.S. home prices rose 0.6% from a month earlier in January on a seasonally adjusted basis, a tick faster than the 0.5% growth experienced each of the three months prior.
The last month that home prices grew at a quicker pace was November 2023 (0.7%).
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. January data covers the three months ending January 31, 2024. Read the full RHPI methodology here.
On a year-over-year basis, home prices rose 5.4% in January—the slowest pace since August 2023.
While home prices grew slightly faster in January than previous months, that speed may not continue for long, according to Redfin Senior Economist Sheharyar Bokhari.
“Price growth in January mainly relates to homes that went under contract in December. Since then we have seen a slowdown in sales, along with an uptick in homes being listed,” he said. “That’s likely to lead to slightly slower price growth moving forward because not only are homes sitting longer on the market, when they do go under contract, they are selling at nearly 2% under list price—the biggest discount in nearly two years.”
Metro-Level Summary: Redfin Home Price Index, January 2025
Ten (20%) of the 50 most populous U.S. metro areas recorded a seasonally adjusted drop in home prices in January, month over month.
The biggest decline in January was in Tampa, FL (-1.6%), followed by Dallas (-0.9%) and Oakland, CA (-0.7%). The highest month over month gains were recorded in Pittsburgh, PA (3%), Nassau County, NY (2.8%) and Philadelphia (2.6%).
Written by: Mark Worley