US Existing-Home Prices Rise 0.3% in June

On Tuesday, Redfin reported that US home prices rose 0.3% in June on a seasonally adjusted basis, matching May for the fastest monthly growth since January.

Year-over-year, home prices increased 3.0%, the fastest annual growth in 10 months.

The Redfin Home Price Index (RHPI) uses the repeat-sales pricing method to calculate seasonally adjusted changes in single-family home prices, tracking how values change between sales of the same properties. The June data cover the three months ending June 30.

Redfin attributed the increase to stronger homebuying demand at the start of summer despite elevated mortgage rates and economic uncertainty. Limited supplies of affordable, move-in-ready homes in many markets helped push prices to a record high.

Prices rose monthly in 30 of the 49 major metros with sufficient data. Columbus, Ohio, led with a 1.2% increase, followed by Miami at 1.1%, Cincinnati and Kansas City, Missouri, at 1.0% each, and Warren, Michigan, at 0.8%. San Francisco posted the largest decline at 1.0%.

Redfin Senior Economist Sheharyar Bokhari said:

“This summer’s home sellers and buyers should pay close attention to local trends; every housing market is definitely not equal. Sellers in strong buyer’s markets like Nashville or Austin, for instance, should recognize that while prices are rising to record highs nationwide, that’s not necessarily the case in their area; they may need to price lower than they want to attract buyers. But sellers in places with tighter inventory and strong demand from wealthy buyers, like San Francisco, hold more negotiating power and can likely command higher prices.”