US home prices fell slightly by 0.1% seasonally adjusted in April, the first monthly decline since September 2022, according to a report by real estate brokerage Redfin (NASDAQ:RDFN).
The report also noted that home prices rose by 4.1% year-over-year, slower than the 4.9% increase recorded in March. This is the slowest annual rate of price growth since July 2023. The data is based on the Redfin Home Price Index (RHPI), which uses the resale method to calculate seasonally adjusted changes in the prices of single-family homes. The RHPI tracks the sales prices of homes sold during a given period and how those prices have changed since the last time the same homes were sold.
This is only the third time the RHPI has recorded a monthly decline, with the previous ones occurring in August and September 2022 following a series of rapid interest rate hikes. While the decline in April was modest (-0.05%, rounded to -0.1%), it’s worth noting that the RHPI data is subject to revision.
Redfin’s senior economist, Shehryar Bokhari, attributes the stabilization in home prices to two key factors. First, potential buyers are wary of the impact of U.S. tariff policy and the possibility of a recession, which led to a 3.5% drop in pre-existing home sales in April compared to the previous month. Second, the total number of homes for sale is at a five-year high, largely because homes are not selling, forcing sellers to offer discounts at near-record levels.
Despite the price declines, Bokhari noted that affordability remains a major concern for many buyers due to rising mortgage rates and high prices, forcing many to stretch their budgets to make a purchase.
The report also found that prices fell in 25 of the 50 most populous metropolitan areas in April, on a seasonally adjusted basis. The biggest declines were in Charlotte, North Carolina (-1%), Virginia Beach, Virginia (-1%) and Miami (-0.7%). In contrast, Nassau County, New York (1.8%), Warren County, Michigan (1.3%), and New York City (1.2%) saw the most significant price increases.
Detailed statistics on average property prices in Bulgaria by city and neighborhood can be found HERE