U.S. home prices rose again in September
U.S. home prices grew 0.5 percent from a month earlier in September on a seasonally adjusted basis, according to a new report from Redfin. That’s the fastest pace since April and the third consecutive month where the growth rate has increased, per Redfin's data.
On a year-over-year basis, home prices rose 6 percent, the lowest annual increase since December. 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.
Mortgage affordability improved in September when rates dropped as low as 6.08 percent, but home prices are continuing to tick up because demand outweighs supply.
“There are around 20 percent fewer homes on the market today than there were five years ago, mainly because so many homeowners locked in a low mortgage rate during the pandemic,” said Redfin senior economist Sheharyar Bokhari. “With mortgage rates back above 6.5 percent this month—and unlikely to drop below 6 percent this year—home prices will likely continue their consistent climb until more inventory comes onto the market in the spring.”
Metro-level highlughts
Thirteen of the 50 most populous U.S. metro areas recorded a seasonally adjusted drop in home prices in September, month over month.
The biggest decline in September was in San Antonio (-1 percent), followed by Fort Lauderdale, Fla. (-0.9 percent) and Fort Worth, Texas (-0.5 percent). The highest month over month gains were recorded in Nassau County, N.Y. (1.7 percent), Philadelphia (1.6 percent) and Virginia Beach, Va. (1.4 percent). See more metro-specific data below.
