U.S. Home Prices Rose 0.4% in December

• Home prices grew 0.4% month over month in December, rising at a slightly slower pace than the past four months.
• On a year-over-year basis, home prices closed out the 2024 calendar year up 5.4%, the smallest annual increase since 2015.
• 15 of the 50 most populous U.S. metros recorded a drop in home prices month over month.

U.S. home prices rose 0.4% from a month earlier in December on a seasonally adjusted basis, slightly slower than the 0.5% growth posted in November.

var divElement = document.getElementById(‘viz1737479456815’); var vizElement = divElement.getElementsByTagName(‘object’)[0]; if ( divElement.offsetWidth > 800 ) { vizElement.style.width=’1000px’;vizElement.style.height=’827px’;} else if ( divElement.offsetWidth > 500 ) { vizElement.style.width=’1000px’;vizElement.style.height=’827px’;} else { vizElement.style.width=’100%’;vizElement.style.height=’1427px’;} var scriptElement = document.createElement(‘script’); scriptElement.src = ‘https://public.tableau.com/javascripts/api/viz_v1.js’; vizElement.parentNode.insertBefore(scriptElement, vizElement);

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 is published more than one month earlier. December data covers the three months ending December 31, 2024. Read the full RHPI methodology here.

On a year-over-year basis, home prices closed the 2024 calendar year up 5.4%. That was the second-smallest annual increase in a calendar year since Redfin started tracking the RHPI in 2013, only trailing 2015 (5.2%).

!function(){“use strict”;window.addEventListener(“message”,(function(a){if(void 0!==a.data[“datawrapper-height”]){var e=document.querySelectorAll(“iframe”);for(var t in a.data[“datawrapper-height”])for(var r=0;r<e.length;r++)if(e[r].contentWindow===a.source){var i=a.data["datawrapper-height"][t]+"px";e[r].style.height=i}}}))}();

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. “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 downwards pressure on prices.” 

Metro-Level Summary: Redfin Home Price Index, December 2024

Fifteen (30%) 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, FL (-1.3%), followed by Atlanta (-0.9%) and Miami (-0.7%). The highest month over month gains were recorded in Pittsburgh, PA (1.9%), Cleveland (1.5%) and St. Louis, MO (1.3%).

var divElement = document.getElementById(‘viz1737479917036’); var vizElement = divElement.getElementsByTagName(‘object’)[0]; if ( divElement.offsetWidth > 800 ) { vizElement.style.width=’1000px’;vizElement.style.height=’850px’;} else if ( divElement.offsetWidth > 500 ) { vizElement.style.width=’1000px’;vizElement.style.height=’850px’;} else { vizElement.style.width=’100%’;vizElement.style.height=’1450px’;} var scriptElement = document.createElement(‘script’); scriptElement.src = ‘https://public.tableau.com/javascripts/api/viz_v1.js’; vizElement.parentNode.insertBefore(scriptElement, vizElement);

The post U.S. Home Prices Rose 0.4% in December appeared first on Redfin Real Estate News.