US Existing-Home Prices Increase 5.4% Year-Over-Year in December

On Tuesday, Redfin reported that according to its latest data, US home prices grew 0.4% in December on a seasonally adjusted basis, slightly faster than the 0.5% growth posted in November.

According to the Redfin Home Price Index (RHPI), home prices closed 2024 up 5.4% year-over-year. That was the smallest annual increase in a calendar year since 2015 and the second smallest since 2013. Redfin’s RHPI 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.

Redfin predicts home prices will continue to rise steadily throughout 2025, growing at a similar rate to 2024.

Commenting on the report, Redfin Senior Economist Sheharyar Bokhari:

“Prices will keep going up consistently because it’s unlikely there will be enough new inventory to meet buyer demand. We expect there will be slightly more sales this year, largely due to pent-up demand, but there won’t be enough of an increase in listing activity to put significant downward pressure on prices.”