US Existing-Home Prices Rise in August

Redfin reported that US home prices rose 0.25% in August on a seasonally adjusted basis, down slightly from gains of 0.26% in July and 0.27% in June. Year-over-year, prices increased 3.7%, the fastest annual growth rate in a year.

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. August data covers the three months ending August 31.

Redfin noted that home prices rose monthly in about half of the 50 most populous US metropolitan areas in August. St. Louis posted the largest increase, up 1.1% on a seasonally adjusted basis, followed by Pittsburgh at 1.0%. San Antonio, San Jose, California, and Baltimore each recorded gains of 0.9%.

The largest monthly declines were recorded in Austin, Texas, and Charlotte, North Carolina, both down 0.7%. Milwaukee and Warren, Michigan, declined 0.6%, while Fort Lauderdale, Florida, fell 0.5%.

In remarks accompanying the release, Redfin Head of Economic Research Chen Zhao said:

“Slowing price growth is good news for buyers because it means waiting for the right home is less likely to come with a rapidly rising price tag. Buyers can afford to be choosy and negotiate. Sellers should recognize that pricing too high in today’s market could mean their home sits on the market—and they may eventually have to cut the price. Pricing realistically from the start is a good way to attract attention.”