Home Price Increases Slow to a Crawl
The rise may be slow, but the dip in mortgage rates and low inventory is likely to keep it steady
Home prices in the U.S. continue to rise, but now at more of a crawl than a sprint. They were up 0.2% in June – the smallest increase in 18 months, according to the Redfin Home Price Index (RHPI).
The RHPI measures the sale prices of homes that sold during a given period and how those prices have changed since the last time those same properties sold. June data covers the entire second quarter.
Compared to the same month in the previous year, home prices in June 2024 were up 6.9% – the lowest annual growth since January. The rise may be slow, but the dip in mortgage rates and low inventory is likely to keep it steady, as home prices keep setting record highs even though there are fewer buyers, RHPI commented.
San Jose, CA recorded the highest month-over-month price boost, up 2.01%, followed by Warren, MI, up 1.71%, Anaheim, CA, up 1.37%, Minneapolis, MN, up 1.25%, and Detroit, MI, up 1.2%.
On an annual basis, home prices in Nassau County soared 20.64%, followed by Chicago, up 15.18%, Detroit, up 15.15%, Anaheim, up 13.43%, and Newark, NJ, up 13.36%. Prices rose more than 12% year-over-year in San Jose, Cleveland, and Miami.
Monthly prices dipped, however, in 19 of the 50 most populous metro areas in the U.S. The steepest falls were in Nassau County, NY, down 3.1%, and Austin, TX, down 1.7%, while West Palm Beach, FL, and Philadelphia, PA, were each down 1.1%.