US Home Prices Rise 0.6% Month-Over-Month in January

On Tuesday, Redfin reported that US home prices rose 0.6% month-over-month in January on a seasonally adjusted basis, a tick faster than the 0.5% growth in each of the three months prior. The last month when home prices grew at a quicker pace was November 2023, up 0.7%.

This is according to the Redfin Home Price Index (RHPI), which uses the repeat-sales pricing method to calculate seasonally adjusted changes in prices of single-family homes. The RHPI measures sale prices of homes that sold during a given period, and how those prices have changed since the last time those same homes sold.

Year-over-year, home prices rose 5.4% in January—the slowest pace since August 2023.

In a statement accompanying the report, Redfin Senior Economist Sheharyar Bokhari said:

“Price growth in January mainly relates to homes that went under contract in December. Since then, we have seen a slowdown in sales, along with an uptick in homes being listed. That’s likely to lead to slightly slower price growth moving forward because not only are homes sitting longer on the market, when they do go under contract, they are selling at nearly 2% under list price—the biggest discount in nearly two years.”