U.S. home prices grew 0.4 percent from a month earlier in December on a seasonally adjusted basis, slightly faster than the 0.5 percent growth posted in November, according to a new report from Redfin.
On a year-over-year basis, home prices closed the 2024 calendar year up 5.4 percent. That was the smallest annual increase in a calendar year since 2015 and the second smallest since 2013. This is 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.
Redfin predicts home prices will continue to rise steadily throughout 2025, growing at a similar rate to 2024.
“Prices will keep going up consistently because it’s unlikely there will be enough new inventory to meet buyer demand,” said Redfin Senior Economist Sheharyar Bokhari in a release. “We expect there will be slightly more sales this year, largely due to pent-up demand, but there won’t be enough of an increase in listing activity to put significant downward pressure on prices.”
Fifteen (30 percent) of the 50 most populous U.S. metro areas recorded a seasonally adjusted drop in home prices in December, month over month.
The biggest decline in December was in Tampa, Fla. (-1.3 percent), followed by Atlanta (-0.9 percent) and Miami (-0.7 percent). The highest month-over-month gains were recorded in Pittsburgh (1.9 percent), Cleveland (1.5 percent) and St. Louis (1.3 percent).
The full report can be found here.