U.S. home prices are growing half as fast as they were at the end of last year

SEATTLE--(BUSINESS WIRE)--Apr. 17, 2025-- (NASDAQ: RDFN) — Nationwide, the median home-sale price rose 2.6% year over year during the four weeks ending April 13, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. That’s roughly the same as the increases Redfin has seen over the past month, but down from 5% to 6% growth at the end of 2024 and the start of 2025.

On a metro level, the median home-sale price is down from a year ago in 10 of the 50 most populous U.S. metro areas, mostly in Texas and Florida.

Price growth is losing steam nationally—and prices are dropping in some metro areas—because supply is rising while demand is slow. New listings of homes for sale are up 11.2% year over year, and the totalnumber of homes for sale is up 12.3%. Meanwhile, pending home sales declined roughly 1% from a year ago, mortgage-purchase applications are down 5% week over week, and Redfin agents in many parts of the country report that house hunters are backing off.

Homebuying demand is slow for two key reasons:

• Record-high housing costs. The median U.S. monthly housing payment hit an all-time high of $2,819 this week due to stubbornly high mortgage rates and rising home prices, though buyers may get a bit of relief on prices in the coming months if growth continues to lose steam.
• Widespread economic instability. Tariffs, stock-market volatility and recession jitters are weighing heavily on consumer confidence, sending many would-be buyers to the sidelines. This sense of financial instability, along with concerns that home values could decline, is making many people think twice before making a big purchase.

New listings are rising in part because some homeowners want to sell their house now before a potential economic downturn further dampens demand and possibly drives down home values. There’s also a holiday effect at play; part of the reason for the year-over-year increase in new listings is because Easter fell into the comparable period in 2024 but hasn’t occurred yet in 2025.

“A lot of buyers, especially first-timers, are backing off because they’re nervous about a potential recession,” said Venus Martinez, a Redfin Premier agent in Los Angeles. “Some house hunters are hanging out on the sidelines because they’re hopeful mortgage rates will come down soon. The buyers who are still active, typically those who need to move, are picky and unwilling to pay over asking price. And those buyers have the right strategy: Many of today’s sellers are willing to negotiate the price down.”

For Redfin economists’ takes on the housing market, please visit Redfin’s “From Our Economists” page.

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To view the full report, including charts, please visit:
https://www.redfin.com/news/housing-market-update-price-growth-losing-steam

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 $1.8 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250417013289/en/

Contact Redfin
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Tana Kelley
press@redfin.com

Source: Redfin