Home prices ticked down 0.1 percent in April on a seasonally adjusted basis, the first month-over-month decline since September 2022, according to a report from Redfin.
Home prices were up 4.1 percent on a year-over-year basis, down from 4.9 percent growth in March. That’s the lowest annual price growth since July 2023.
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.
April marked only the third time that the RHPI has posted a month-over-month decline, with the other months — August and September in 2022—coming after a series of rapid interest rate rises. Redfin noted that April’s decline (-0.05 percent, rounded to -0.1 percent) is minor and that RHPI data is subject to revision.
Redfin Senior Economist Sheharyar Bokhari said home prices are essentially flat for two reasons:
- Demand is down: Buyers are adopting a wait-and-see approach, with the impact of tariff policies and a potential recession weighing heavily on their decision to make major purchases. With more buyers on the sidelines, pending home sales were down 3.5 percent month-over-month on a seasonally adjusted basis in April.
- Supply is up: The total number of homes for sale is at a five-year high — mainly because homes aren’t selling. That’s leading sellers to offer concessions at near-record levels.
“Home prices are flat, and that’s good news for buyers after years of rapid increases,” Bokhari said. “But even with prices softening, affordability remains a major hurdle. Elevated mortgage rates and high prices mean that many buyers are stretching their budgets to make a purchase.”
Prices fell in 25 of the 50 most populous metro areas on a seasonally adjusted basis in April, month-over-month.
The biggest decline was in Charlotte, N.C. (-1 percent), followed by Virginia Beach, Va. (-1 percent) and Miami (-0.7 percent). Prices increased most in Nassau County, N.Y. (1.8 percent month-over-month), Warren, Mich. (1.3 percent) and New York (1.2 percent).