Redfin Home Price Index: Price Growth Holds Steady at Start of Year

by Real estate financingMission+
10 minutes read

Home prices rose 0.5% month over month in January, on par with December’s gain, as the drop in mortgage rates at the end of last year gave buyers a bit more purchasing power.

U.S. home prices climbed 0.5% from a month earlier in January, matching the 0.5% gain seen in both December and November. On a year-over-year basis, prices rose 6.7%—the largest increase in a year.

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. It’s similar to the S&P CoreLogic Case-Shiller Home Price Indices but publishes more than one month earlier. January data covers the three months ending Jan. 31, 2024. Read the full RHPI methodology here.

“Price growth held steady last month because many of the home purchases that closed in January were negotiated at the end of last year, when mortgage rates posted the biggest drop since 2008. The decline in rates gave buyers more purchasing power, and for some, a sense of urgency to lock in a mortgage,” said Redfin Senior Economist Sheharyar Bokhari. “Prices also climbed because there’s still a shortage of homes for sale, which is fueling competition in some areas.”

New listings fell 1.2% month over month on a seasonally adjusted basis in January, the first drop since June, and remained far below pre-pandemic levels—contributing to the increase in prices. Listings are declining largely because many homeowners are hesitant to give up their rock-bottom mortgage rates; a majority of homeowners still have rates below current levels.

Prices Climbed Most in Montgomery County, Fell Fastest in Charlotte 

In Montgomery County, PA, home prices rose 3.7% from a month earlier in January—the biggest increase among the 50 most populous U.S. metropolitan areas. Next came Philadelphia (1.9%), Baltimore (1.9%), Cleveland (1.7%) and New York (1.6%).

Thirteen metros saw price declines. In Charlotte, NC, home prices dropped 0.7% month over month—the largest decrease among the 50 most populous metros. It was followed by San Francisco (-0.6%), Austin, TX (-0.6%), San Diego (-0.5%) and Sacramento, CA (-0.4%).

Metro-Level Summary: Redfin Home Price Index, January 2024

The table below includes the 50 most populous U.S. metro areas.

U.S. metro area Month-over-month change Year-over-year change
Anaheim, CA 0.4% 10.6%
Atlanta, GA 0.5% 8.5%
Austin, TX -0.6% -5.3%
Baltimore, MD 1.9% 9.4%
Boston, MA 0.1% 10.6%
Charlotte, NC -0.7% 10.8%
Chicago, IL 0.9% 11.8%
Cincinnati, OH 1.4% 15.8%
Cleveland, OH 1.7% 14.0%
Columbus, OH -0.1% 8.7%
Dallas, TX 0.4% 3.6%
Denver, CO 0.9% 6.3%
Detroit, MI 0.2% 9.6%
Fort Lauderdale, FL 0.3% 8.5%
Fort Worth, TX 1.3% 3.8%
Houston, TX 0.0% 2.4%
Indianapolis, IN 1.1% 6.2%
Jacksonville, FL 0.9% 3.7%
Kansas City, MO 0.9% 9.9%
Las Vegas, NV 0.6% 5.8%
Los Angeles, CA 0.8% 8.3%
Miami, FL 0.8% 9.4%
Milwaukee, WI 1.5% 7.6%
Minneapolis, MN 0.1% 4.4%
Montgomery County, PA 3.7% 10.8%
Nashville, TN -0.1% 5.3%
Nassau County, NY 1.0% 8.5%
New Brunswick, NJ 1.3% 13.1%
New York, NY 1.6% 11.5%
Newark, NJ 1.3% 15.8%
Oakland, CA 0.9% 6.1%
Orlando, FL 0.1% 4.0%
Philadelphia, PA 1.9% 12.4%
Phoenix, AZ -0.1% 4.2%
Pittsburgh, PA 1.0% 9.8%
Portland, OR -0.2% 2.3%
Providence, RI -0.3% 11.4%
Riverside, CA 0.4% 3.5%
Sacramento, CA -0.4% 3.4%
San Antonio, TX -0.1% -2.8%
San Diego, CA -0.5% 9.7%
San Francisco, CA -0.6% 5.2%
San Jose, CA 0.2% 14.7%
Seattle, WA 0.1% 6.2%
St. Louis, MO -0.3% 7.1%
Tampa, FL -0.2% 2.5%
Virginia Beach, VA 0.1% 6.0%
Warren, MI 0.7% 9.4%
Washington, D.C. 0.8% 8.1%
West Palm Beach, FL 0.1% 6.8%
National—U.S.A. 0.5% 6.7%

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