On a year-over-year basis, prices rose 5.4% in January, the slowest pace since August 2023

(NASDAQ:RDFN) — U.S. home prices rose 0.6% from a month earlier in January on a seasonally adjusted basis, a tick faster than the 0.5% growth experienced each of the three months prior. That's according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

The last month that home prices grew at a quicker pace was November 2023 (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.

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

While home prices grew slightly faster in January than previous months, that speed may not continue for long, according to Redfin Senior Economist Sheharyar Bokhari.

"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," he said. "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."

Metro-Level Summary: Redfin Home Price Index, January 2025

Ten (20%) of the 50 most populous U.S. metro areas recorded a seasonally adjusted drop in home prices in January, month over month.

The biggest decline in January was in Tampa, FL (-1.6%), followed by Dallas (-0.9%) and Oakland, CA (-0.7%). The highest month over month gains were recorded in Pittsburgh, PA (3%), Nassau County, NY (2.8%) and Philadelphia (2.6%).

To view the full report, including a chart and additional metro-level data, please visit: https://www.redfin.com/news/home-price-index-january-2025/

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, and title insurance services. We run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1.6 billion in commissions. We serve approximately 100 markets across the U.S. and Canada and employ over 4,000 people.

Redfin's subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and WalkScore®.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250218121240/en/

Contact Redfin

Redfin Journalist Services:

Angela Cherry

press@redfin.com

Redfin Reports U.S. Home Prices Grew 0.6% in January