• House prices rose 0.2% in July, the slowest pace since January 2023.
• Twenty of the fifty most populous U.S. cities saw a decline in real estate prices.
• Due to lack of inventory and competition, prices continue to rise slightly.

US home prices rose 0.2% in July, seasonally adjusted, for the second month in a row. This represents the smallest month-on-month increase since January 2023.

Year-over-year, home prices rose 6.8 percent in July, down from 7.3 percent in June. This is the lowest annual increase since January.

This is according to the Redfin Home Price Index (RHPI), which uses prices for repeat sales Proceedings to calculate seasonally adjusted price changes in single-family homes. The RHPI measures the sales prices of homes sold during a given period and how those prices have changed since the same homes were last sold. It is similar to the S&P CoreLogic Case-Shiller Home Price Indices, but is released more than a month earlier. July data covers the three months ending July 31, 2024. Read the full RHPI methodology Here.

Home prices continue to rise All-time highs– albeit at a slower pace than in previous months – as there is still a shortage of homes on the market relative to buyer demand. Mortgage rates are decreased significantly in recent weeks, but this has not yet translated into a significant increase in buyers, which in turn has prevented a faster increase in prices.

“There are not enough sellers offering their homes to cause prices to fall, and there are not enough buyers to create competition that drives prices up significantly,” said Redfin Senior Economist Sheharyar Bokhari“Relatively low sales and incremental price increases will remain the status quo every month until one of these things changes.”

Metropolitan Summary: Redfin Home Price Index, July 2024

Twenty (40%) of the 50 most populous U.S. metropolitan areas reported a month-over-month decline in home prices in July, on a seasonally adjusted basis. This number is higher than in February, when only four metropolitan areas reported a month-over-month decline.

The largest decline in July was in Austin, Texas (-1.6%), followed by San Francisco (-1.1%) and Nassau County, New York (-0.7%). The largest month-over-month increases were in Indianapolis (1.2%), Miami (1.2%) and San Antonio, Texas (1.1%).

The following table lists the 50 most populous metropolitan areas in the United States.