U.S. home prices decreased 0.1% in April on a seasonally adjusted basis, marking the first monthly decline since September 2022. The dip follows a period of steady increases and reflects shifting dynamics in both supply and demand, according to Redfin.
Annual price growth also slowed, falling to 4.1% in April from 4.9% in March, the lowest year-over-year increase since July 2023. Redfin’s Home Price Index, which uses the repeat sales pricing method, recorded only its third monthly decline since 2022, with previous drops in August and September of that year.
Half of the 50 most populous U.S. metro areas saw monthly price declines. Charlotte, North Carolina led with a 1% drop, followed by Virginia Beach at 1% and Miami at 0.7%. Conversely, prices rose in Nassau County, New York at 1.8%, Warren, Michigan at 1.3%, and New York City at 1.2%.
Pending home sales dropped 3.5% in April, as elevated mortgage rates, concerns over U.S. tariff policies, and fears of a potential recession made buyers hesitant. Meanwhile, the total number of homes for sale reached a five year high, largely due to unsold listings. Sellers responded with concessions nearing record levels.
“Home prices are flat, and that is good news for buyers after years of rapid increases,” said Redfin Senior Economist Sheharyar Bokhari. “But even with prices softening, affordability remains a major hurdle. Elevated mortgage rates and high prices mean that many buyers are stretching their budgets to make a purchase.”
