U.S. home prices rose by 0.5 percent in September on a seasonally adjusted basis, the fastest growth rate since April, a Redfin report found.
September also marked the third consecutive month where the growth pace has risen, while mortgage affordability also improved, with rates dropping to 6.08 percent from August’s rate of above 6.5 percent.
Home prices rose 6 percent on a year over year basis, marking the lowest annual increase since December 2023, according to the Redfin’s Home Price Index, which uses the repeat sales method to calculate how real estate valuations change over time.
The increase in prices can be traced to high demand and a lack of housing supply. There are 20 percent fewer homes on the market today than there were a half decade ago, when people took advantage of historically low mortgage rates.
Redfin senior economist Sheharyar Bokhari says that with mortgage rates 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.”
13 of the most populous metro areas in the United States recorded seasonally adjusted declines in home pricing in September on a month-over-month basis. San Antonio and Fort Worth saw prices drop by 1 percent and 0.5 percent respectively, while prices in Fort Lauderdale, FL fell by 0.9 percent.
New York’s Nassau County recorded a 1.7 percent rise in home pricing, the largest increase recorded in September. Philadelphia followed with a price increase of 1.6 percent, while Virginia Beach prices increased by 1.4 percent.
– Caroline Handel
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