US Home Prices Post Third Straight Monthly Decline in July

On Tuesday, Redfin reported that US home prices edged down 0.1% in July on a seasonally adjusted basis, marking the third consecutive monthly decline.

The RHPI has only posted monthly declines on five occasions since 2012: August 2022, December 2022, and May, June, and July of this year.

Year-over-year, price growth slowed to 2.9%, the lowest rate recorded in Redfin Home Price Index (RHPI) data going back to 2012.

The 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.

Redfin attributed the recent slowdown to a rebound in housing supply to pre-pandemic levels combined with buyer demand at its lowest point in more than a decade, excluding April 2020 during pandemic lockdowns. Homeowners remain reluctant to move, with prices still near record highs, mortgage rates elevated, and economic uncertainty persisting.

In remarks accompanying the release, Redfin Senior Economist Sheharyar Bokhari said:

“After several years of tight inventory driving relentless price growth, we’re now seeing the opposite dynamic. Home prices are falling in more US metros than at any point since we began tracking this data in 2012, and the reason is simple: supply is significantly outpacing demand. If homeowners want to sell, they have to meet buyers where they are, which often means lowering prices. It’s a moment where patient, prepared buyers can find deals that simply weren’t possible a year ago.”