U.S. housing prices fell by 0.1% in July on a seasonally adjusted basis, marking the third consecutive month of declines, according to a new report from real estate firm Redfin (NASDAQ:RDFN).
Annual price growth slowed to 2.9%, the weakest pace recorded since Redfin began compiling its Redfin Home Price Index (RHPI) in 2012.
The RHPI, which measures seasonally adjusted price changes for single-family homes using a repeat-sales methodology, has registered monthly declines only five times since 2012: August 2022, December 2022, and now May, June, and July of this year.
The cooling trend comes as housing inventory has returned to pre-pandemic levels, while buyer activity has dropped to its lowest point in over a decade, excluding the April 2020 pandemic lockdown period. Potential buyers remain cautious amid near-record high prices, elevated mortgage rates, and economic uncertainty.
“After several years of tight inventory driving relentless price growth, we’re now seeing the opposite dynamic,” said Redfin Senior Economist Sheharyar Bokhari. “Home prices are falling in more U.S. metros than at any point since we began tracking this data in 2012, and the reason is simple: supply is significantly outpacing demand.”
At the metro level, July saw prices decline in 39 of the 50 largest U.S. metropolitan areas on a seasonally adjusted monthly basis — the highest number since Redfin began tracking. This broke the previous record of 38 metros with falling prices set in September 2022.
West Palm Beach, Florida recorded the largest monthly drop at 2.6%, followed by San Diego (-2.2%) and Austin, Texas (-1.9%). In contrast, Warren, Michigan led gains at 1.3%, with Newark, New Jersey (0.7%) and San Jose, California (0.5%) also seeing increases.
On a yearly basis, New York saw the strongest growth at 11.8%, followed by Newark (9.3%) and Nassau County, New York (8.3%). The biggest annual declines occurred in Austin (-4.5%), Tampa, Florida (-4.2%), and Dallas (-2.6%).
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.