On a year-over-year basis, home prices rose 5.4% in December, the smallest annual increase since 2015

(NASDAQ: RDFN) — U.S. home prices grew 0.4% from a month earlier in December on a seasonally adjusted basis, slightly faster than the 0.5% growth posted in November. That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

On a year-over-year basis, home prices closed the 2024 calendar year up 5.4%. That was the smallest annual increase in a calendar year since 2015 and the second smallest since 2013. 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.

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 downward 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%).

To view the full report, including a chart and additional metro-level data, please visit: https://www.redfin.com/news/home-price-index-december-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, and title insurance 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. 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 approximately 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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