Home prices ticked up 0.2 percent for the second-consecutive month in July, on a seasonally adjusted basis, according to a new report from Redfin.
That’s equal to the smallest month-over-month increase since January 2023.
On a year-over-year basis, home prices rose 6.8 percent in July, down from 7.3 percent in June and the lowest annual increase recorded since January.
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. July data covers the three months ending July 31.
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, according to Redfin.
“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,” Redfin Senior Economist Sheharyar Bokhari said in a release. “Relatively low sales and gradual price increases will remain the status quo each month until one of those things changes.”