SEATTLE – U.S. home prices increased 0.25% month-over-month in August on a seasonally adjusted basis – down slightly from 0.26% in July and 0.27% in June – according to a new report from Redfin, the real estate brokerage powered by Rocket.
Prices rose 3.7% from a year earlier in August, the fastest annual growth rate in a year, according to the Redfin Home Price Index, which uses the repeat-sales pricing method to calculate seasonally adjusted changes in single-family home prices. The RHPI measures how sale prices of homes have changed since their previous sale. August data covers the three months ending Aug. 31.
Price growth slowed slightly because buyers continue to gain bargaining power, according to the report. August was the strongest buyer’s market on record, while elevated housing costs and economic uncertainty are keeping a lid on demand, even as the number of homes for sale increases.
Still, the impact is marginal, and home prices continue to rise. This is partly because many homeowners have substantial equity and little incentive to accept a steep discount, the report says. The luxury housing market is another factor keeping prices afloat.
“Slowing price growth is good news for buyers because it means waiting for the right home is less likely to come with a rapidly rising price tag,” said Chen Zhao, Redfin’s head of economics. “Buyers can afford to be choosy and negotiate. Sellers should recognize that pricing too high in today’s market could mean their home sits on the market – and they may eventually have to cut the price. Pricing realistically from the start is a good way to attract attention.”
The full report is available on Redfin’s website.