U.S. Home Prices Continue Their Ascent, Even as High Costs Deter Homebuyers
May 21 2024 - 7:00AM
Business Wire
Redfin reports elevated mortgage rates are
curbing homebuyer demand, but prices continue to tick up because
there aren’t enough homes for sale
(NASDAQ: RDFN) — U.S. home prices climbed 0.5% from a month
earlier in April on a seasonally adjusted basis, and rose 7.3% from
a year earlier, per a new report from Redfin (redfin.com), the
technology-powered real estate brokerage.
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. It’s similar to the S&P CoreLogic Case-Shiller Home Price
Indices but publishes more than one month earlier. April data
covers the three months ending April 30, 2024.
Home-sale prices have been rising by about a half of a
percentage point per month for the last six months. Price growth
has stabilized at this rate following dramatic ups and downs during
the pandemic homebuying boom and is now on par with pre-pandemic
levels.
Elevated mortgage rates and high home prices have cooled
homebuyer demand, but prices continue to tick up because there
aren’t enough homes for sale. New listings have increased in recent
months but remain roughly 20% below pre-pandemic levels. That’s
largely because many homeowners don’t want to sell, as they feel
“locked in” by the low mortgage rate they scored during the
pandemic.
“Some of my younger buyers are considering buying a multifamily
home and renting half of it out in order to make their monthly
payments pencil out,” said Bonnie Phillips, a Redfin Premier real
estate agent in Cleveland.
Last week, homebuyers’ monthly payments came down slightly from
April’s all-time high when mortgage rates fell below 7% for the
first time in five weeks.
To view the full report, including charts and metro-level data,
please visit:
https://www.redfin.com/news/redfin-home-price-index-april-2024
About Redfin
Redfin (www.redfin.com) is a technology-powered real estate
company. We help people find a place to live with brokerage,
rentals, lending, title insurance, and renovations services. We run
the country's #1 real estate brokerage site. Our customers can save
thousands in fees while working with a top agent. Our home-buying
customers see homes first with on-demand tours, and our lending and
title services help them close quickly. Customers selling a home
can have our renovations crew fix it up to sell for top dollar. Our
rentals business empowers millions nationwide to find apartments
and houses for rent. Since launching in 2006, we've saved customers
more than $1.6 billion in commissions. We serve more than 100
markets across the U.S. and Canada and employ over 4,000
people.
Redfin’s subsidiaries and affiliated brands include: Bay Equity
Home Loans®, Rent.™, Apartment Guide®, Title Forward® and
WalkScore®.
For more information or to contact a local Redfin real estate
agent, visit www.redfin.com. To learn about housing market trends
and download data, visit the Redfin Data Center. To be added to
Redfin's press release distribution list, email press@redfin.com.
To view Redfin's press center, click here.
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version on businesswire.com: https://www.businesswire.com/news/home/20240521096578/en/
Contact Redfin Redfin Journalist Services: Ally Braun,
206-588-6863 press@redfin.com
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