Home prices in the United States rose 0.1% month over month in March, the third straight month of the same increase, according to a new report from the real estate brokerage Redfin.
The report, the Redfin Home Price Index (RHPI), noted that prices rose 1.7% from a year earlier, the slowest year-over-year growth rate in records dating back to 2012. Home-price growth has been slowing since the start of 2025, Redfin said.
“Price growth is losing steam, with the slowest annual gains we’ve seen in a decade—in line with our expectations for the year,” said Chen Zhao, Redfin’s head of economics research. “High mortgage rates and global uncertainty are causing some would-be buyers to back off, which is putting a lid on home prices. While that can be frustrating for homeowners hoping to sell, it’s the start of a reset for the housing market as a whole, and may ultimately bring homebuying costs down enough to bring some house hunters back.”
The RHPI uses the repeat-sales pricing method to calculate seasonally adjusted changes in prices of single-family homes and it 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 said that home-price growth has slowed this year on a year-over-year basis because demand is tepid.
High Mortgage Rates
It said that many would-be buyers have backtracked because of high mortgage rates and uncertainty about the U.S. economy and the Iran war. Mortgage rates rose from 6% to 6.4% in March, largely because the Iran war pushed up oil prices and roiled markets.
But prices are rising because new listings of homes for sale are declining. There are still hundreds of thousands more home sellers than buyers in the market, but now some homeowners are opting to stay put rather than list their home into a soft market.
Home prices fell in 13 major U.S. metros month over month on a seasonally adjusted basis in March. Redfin said it analyzed the 50 most populous metro areas and included in this analysis the 46 with sufficient data.
The biggest declines were in Fort Worth, Texas (-0.8%) and Austin, Texas (-0.7%). Next come Nashville, Tennessee (-0.6%), Oakland, California (-0.6%) and Phoenix (-0.3%). The biggest increases were in Pittsburgh (2.8%), West Palm Beach, Florida (2.1%), Nassau County, New York (1.4%), Chicago (1.3%) and San Francisco (1.2%).
The biggest year-over-year price declines were in San Antonio (-4.1%), Jacksonville, Florida (-3.5%) and Austin (-3%). The biggest gains were in San Francisco (13%), Chicago (10.7%) and New York (9.2%), Redfin noted.
