U.S. home prices grew 0.5 percent from a month earlier in November on a seasonally adjusted basis, the third consecutive month with a 0.5 percent increase, according to a new report from Redfin.
On a year-over-year basis, home prices rose 5.7 percent, the lowest annual increase since October 2023.
November was the sixth consecutive month in which annual price growth slowed and the second-consecutive month when it dipped below 6 percent. That’s a similar speed to 2019, prior to the pandemic-driven buying frenzy that saw prices spike by as much as 21.7 percent year over year in March 2022.
“Home prices are likely to keep rising steadily throughout 2025 at a similar pace to this year,” said Redfin Senior Economist Sheharyar Bokhari in a release. “Elevated mortgage rates will cause many homeowners to hang onto their homes—and the low rates they have locked in. That means there will be enough buyers competing over a relatively low number of homes to keep prices ticking up consistently.”
Thirteen of the 50 most populous U.S. metro areas recorded a seasonally adjusted drop in home prices in November, month-over-month.
The biggest decline in November was in Fort Lauderdale, Fla. (-1.1 percent), followed by Tampa, Fla. (-1.1 percent) and San Diego (-1 percent). The highest month-over-month gains were recorded in Nassau County, N.Y. (1.6 percent), Charlotte, N.C. (1.4 percent) and Minneapolis (1.3 percent).