US Home Price Growth Slows to Lowest Monthly Rate Since December 2022

On Tuesday, Redfin reported that according to its Home Price Index (RHPI), US home prices ticked up 0.2% in March on a seasonally adjusted basis, the slowest monthly pace since December 2022.

The RHPI uses the repeat-sales pricing method to calculate seasonally adjusted changes in prices of single-family homes.

Home prices were up 4.6% year-over-year, down from 5.1% growth in February. This marks the 11th consecutive month that annual growth has slowed and the first time it dipped below 5% since August 2023.

Redfin notes that the RHPI has only recorded month-over-month price declines on two occasions, both in mid-2022, when spiking mortgage rates cooled the market dramatically. Since then, prices have grown relatively steadily, with most months seeing gains of 0.4–0.6%.

Price growth is slowing because homebuying demand isn’t keeping up with the rising number of homes for sale, Redfin said. There are a few parts of the country, particularly in the Midwest, where demand is holding up, but generally buyers are backing off.

Commenting on the report, Redfin Senior Economist Sheharyar Bokhari said:

“Homes are taking longer to sell, and prices are falling in some areas because fear of a broader economic slowdown is pushing many would-be buyers to the sidelines. New tariffs are adding to the economic uncertainty, and prices may slow even further in coming months. With housing costs at near-record highs, that’s a silver lining for a buyer who has to move right now, as there will be more room for negotiation.”