U.S. Home Price Growth Continued to Slow in November

U.S. Home Price Growth Continued to Slow in November

Residential News » Seattle Edition | By WPJ Staff | December 26, 2023 10:45 AM ET

November Marked The Third Straight Month of Slowing Price Growth as Supply Crunch Eased

According to Redfin's latest Home Price Index, U.S. home-price growth slowed for the third straight month in November 2023.

Redfin also says U.S. home prices were up 0.6% from October 2023, the smallest monthly increase since June, and were up 6.4% from a year earlier.

"It's a better time to be a homebuyer than it was two months ago," said Redfin Senior Economist Sheharyar Bokhari. "Buyers today have more options to choose from, which is taking pressure off of home prices. Mortgage rates dropped below 7% last week for the first time since August, shaving hundreds of dollars off monthly payments. That news seems to have lured more sellers to the market, which should further improve home buying conditions in the new year."

New listings climbed 1.3% month over month in November to the highest level in over a year on a seasonally adjusted basis as homeowners got tired of waiting on the sidelines, providing relief to buyers who have been grappling with an historic shortage of homes for sale. Pending sales also rose, increasing 2% month over month to the highest level in a year.

This month, new listings have been climbing even faster, and Redfin has seen double-digit year-over-year increases in the number of homeowners contacting our agents to inquire about listings. On the buy-side, mortgage purchase applications have been rising on a seasonally adjusted basis as mortgage rates have come down.

Prices Fell Most in San Antonio, Rose Most in Chicago

Fourteen of the 50 most populous U.S. metropolitan areas posted month-over-month price declines in November. In San Antonio, prices fell 1.9%--the biggest drop among the metros Redfin analyzed. Next came Minneapolis (-1.3%), Austin, TX (-1.3%), Warren, MI (-1%) and Sacramento, CA (-0.7%).

In Chicago, home prices rose 2.4% month over month--the largest increase among the 50 most populous metros. Rounding out the top five are Newark, NJ (2.1%), New York (1.9%), Pittsburgh (1.5%) and Las Vegas (1.3%).

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