US Existing-Home Prices Trend Higher in July

On Tuesday, Redfin reported that US home prices edged 0.27% higher in July on a seasonally adjusted basis, essentially unchanged from the 0.28% growth rate recorded in June.

Year-over-year, price growth accelerated to 3.4%, the fastest annual 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. July data covers the three months ending July 31.

Redfin attributed the trend to competing housing market forces. Elevated mortgage rates and an imbalance of more sellers than buyers have constrained demand and capped price growth, while stronger price gains in the luxury market have helped support overall home prices.

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

“Despite the sluggishness of the overall housing market, home-price growth is proving to be surprisingly resilient. That’s partly because today’s market is split in two: Many everyday buyers are constrained by affordability challenges, while wealthy buyers have the means to keep competing for desirable homes. That upper-end strength is helping prop up prices even as the broader market cools, giving buyers some bargaining power.”