Are home prices finally dropping?

U.S. home prices grew 0.5 percent from a month earlier in November on a seasonally adjusted basis, the third consecutive month with a 0.5 percent increase. That’s according to a new report from real estate brokerage Redfin. On a year-over-year basis, home prices rose 5.7 percent, the lowest annual increase since October 2023.

November was the sixth consecutive month where annual price growth slowed and the second-consecutive month where it dipped below 6 percent. That’s a similar speed to 2019, prior to the pandemic-driven buying frenzy that saw prices spike by as much as 21.7 percent year over year in March 2022.

“Home prices are likely to keep rising steadily throughout 2025 at a similar pace to this year,” said Redfin Senior Economist Sheharyar Bokhari. “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.”