US Home Prices Climb 7.3% Year-Over-Year in April

On Tuesday, Redfin released the results of its Home Price Index (RHPI) for April. According to the data, US home prices increased 0.5% month-over-month and 7.3% year-over-year, on a seasonally adjusted basis.

The data covers the 3-month period ending on April 30th. The Index 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 is similar to the S&P CoreLogic Case-Shiller Home Price Indices.

Redfin also points out that home-sale prices have been rising by about a half of a percentage point per month for the last six months. Price growth has stabilized at this rate following dramatic difficulties during the pandemic homebuying boom and is now on par with pre-pandemic levels.

On the other hand, elevated mortgage rates and high home prices have cooled homebuyer demand, but prices continue to tick up because there aren’t enough homes for sale. New listings have increased in recent months but remain roughly 20% below pre-pandemic levels. That’s largely because many homeowners don’t want to sell, as they feel “locked in” by the low mortgage rate they scored during the pandemic.