Home prices in the United States increased 0.2% month over month in April on a seasonally adjusted basis, and climbed 2.1% year over year, according to a new report, the Redfin Home Price Index.
The index uses the repeat-sales pricing method to calculate seasonally adjusted changes in single-family home prices, Redfin noted. The RHPI measures how sale prices of homes have changed since their previous sale, which is similar to the S&P Cotality Case-Shiller Home Price Indices, but is reported about a month earlier.
April data covers the three months ending April 30, Redfin said.
“An improving labor market is buoying homebuyer demand, which is keeping home price growth afloat. Even though prices are rising, buyers still have bargaining power because they’re outnumbered by sellers,” said Redfin Senior Economist Asad Khan. “If housing demand keeps climbing, sellers may regain some of that power, causing home prices to rise further.”
County in Pennsylvania Leads Nation
In Montgomery County, Pennsylvania, home prices rose 2.5% month over month on a seasonally adjusted basis in April. That’s the biggest increase among the U.S. metropolitan areas Redfin analyzed.
Next was Cleveland, Ohio (2.5%), Nassau County, New York (1.6%), Virginia Beach, Virginia (1.4%), and Pittsburgh, Pennsylvania (1.1%).
Redfin said it analyzed the 50 most populous metros and included in this analysis the 49 with sufficient data. Redfin said that Fort Lauderdale, Florida, is excluded.
According to the brokerage, prices fell from a month earlier in 21 metro areas. The biggest declines were in Oakland, California (-1.4%), Newark, New Jersey (-1.3%), Phoenix, Arizona (-0.7%), Orlando, Florida (-0.6%), and St. Louis, Missouria (-0.5%).
