U.S. home prices increased by 0.6% in January on a seasonally adjusted basis, slightly faster than the 0.5% growth recorded in the previous three months. According to Redfin, the year-over-year increase stood at 5.4%, marking the slowest annual growth rate since August 2023.
The Redfin Home Price Index shows that price gains in January mostly reflect homes that went under contract in December. However, with a rising number of new listings and slower sales, price growth may decelerate in the coming months. Currently, homes are selling at nearly 2% below the list price—the biggest discount in almost two years.
At the metro level, 10 of the 50 largest U.S. housing markets recorded price declines in January. Tampa, Florida, saw the largest drop at -1.6%, followed by Dallas (-0.9%) and Oakland, California (-0.7%). Meanwhile, Pittsburgh experienced the biggest price increase at 3%, with Nassau County, New York (2.8%), and Philadelphia (2.6%) also seeing significant gains.
With buyers exercising caution and sellers adjusting to shifting demand, the housing market remains in flux as 2025 unfolds.
