U.S. home-price growth slowed for the third straight month in November as a jump in new listings cooled homebuyer competition. Home prices were up 0.6% from October, the smallest monthly increase since June, and were up 6.4% from a year earlier.
That’s 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. It’s similar to the S&P CoreLogic Case-Shiller Home Price Indices but publishes more than one month earlier. November data covers the three months ending Nov. 30, 2023. Read the full RHPI methodology here.
“It’s a better time to be a homebuyer than it was two months ago,” said Redfin Senior Economist Sheharyar Bokhari. “Buyers today have more options to choose from, which is taking pressure off of home prices. Mortgage rates dropped below 7% last week for the first time since August, shaving hundreds of dollars off monthly payments. That news seems to have lured more sellers to the market, which should further improve homebuying conditions in the new year.”
New listings climbed 1.3% month over month in November to the highest level in over a year on a seasonally adjusted basis as homeowners got tired of waiting on the sidelines, providing relief to buyers who have been grappling with an historic shortage of homes for sale. Pending sales also rose, increasing 2% month over month to the highest level in a year.
This month, new listings have been climbing even faster, and Redfin has seen double-digit year-over-year increases in the number of homeowners contacting our agents to inquire about listing. On the buy-side, mortgage purchase applications have been rising on a seasonally adjusted basis as mortgage rates have come down.
Fourteen of the 50 most populous U.S. metropolitan areas posted month-over-month price declines in November. In San Antonio, prices fell 1.9%—the biggest drop among the metros Redfin analyzed. Next came Minneapolis (-1.3%), Austin, TX (-1.3%), Warren, MI (-1%) and Sacramento, CA (-0.7%).
In Chicago, home prices rose 2.4% month over month—the largest increase among the 50 most populous metros. Rounding out the top five are Newark, NJ (2.1%), New York (1.9%), Pittsburgh (1.5%) and Las Vegas (1.3%).
The table below includes the 50 most populous U.S. metro areas.
