US Home Prices Increase 0.5% in November

On December 24, Redfin reported that US home prices increased 0.5% in November on a seasonally adjusted basis, marking the third consecutive month of 0.5% growth. Year-over-year, prices rose 5.7%, the lowest annual increase since October 2023.

November was the sixth consecutive month of slowing annual price growth and the second straight month where growth fell below 6%. This pace resembles 2019 levels, prior to the pandemic-driven buying surge that caused prices to spike as much as 21.7% year-over-year in March 2022.

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

“Home prices are likely to keep rising steadily throughout 2025 at a similar pace to this year. Elevated mortgage rates will cause many homeowners to hang onto their homes—and the low rates they have locked in. That means there will be enough buyers competing over a relatively low number of homes to keep prices ticking up consistently.”