Today, Redfin is releasing a new tool that measures changes in U.S. home prices. The Redfin Home Price Index (RHPI) uses the repeat-sales pricing method to calculate how sale prices of single-family homes change over time.
The latest RHPI data shows that prices climbed roughly 1% from September to October.
The median home sale price measures the typical sale price of homes that sold during a given period. We compare that median price with the median price of homes that sold during a different period to measure how prices changed over time. Therefore, when we report on home price growth as measured by median sale price, we’re comparing two different groups of homes. The RHPI, on the other hand, 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. As such, it paints a more precise picture of the typical capital gain or loss and controls for shifts in factors such as home size and home quality, which can skew the median sale price.
Median sale prices aren’t typically seasonally adjusted, meaning month-to-month changes are often caused by seasonal factors like holidays or the spring homebuying season. Because the RHPI is seasonally adjusted, it’s easier to determine whether price trends are unexpected for a given time of year.
“The Redfin Home Price Index is a useful tool for current and aspiring homeowners at a time when mortgage rates and other economic forces are fluctuating rapidly,” said Redfin Chief Economist Daryl Fairweather. “Prospective sellers can use the RHPI to help determine whether it’s a good time to list a home in their area. And prospective buyers can monitor the index to understand how the market is reacting to mortgage rates and supply constraints.”
Moving forward, the RHPI will be published in a report on the Redfin News site on the second-to-last Tuesday of each month, meaning November data will be released Dec. 19. It will also be published on the Redfin Data Center.
Nationwide, home prices rose 0.7% month over month in October to a record high. Monthly price growth is now on par with pre-pandemic levels following a pandemic rollercoaster ride that sent price growth soaring and then tumbling. On a year-over-year basis, prices climbed 6.1% in October, the largest annual increase since the start of 2023.
In Pittsburgh, prices climbed 1.8% month over month in September, the largest monthly jump among the 50 most populous metros. Next came Virginia Beach, VA (1.7%), Boston (1.5%), Columbus, OH (1.5%) and West Palm Beach, FL (1.4%).
Twelve metros saw monthly price declines, with the largest drops in Austin, TX (-1.5%), San Francisco (-1.3%), San Antonio (-1.1%), Cincinnati (-1%) and Philadelphia (-0.9%).
