SEATTLE, WA — U.S. home prices rose by 0.4% in December 2024 on a seasonally adjusted basis, following November’s 0.5% growth, according to a report from Redfin. Over the full year, prices increased by 5.4%, marking the smallest annual gain since 2015 and the second smallest since 2013.
The Redfin Home Price Index (RHPI), which tracks repeat-sale pricing of single-family homes, suggests price growth will continue at a similar steady pace in 2025.
“Prices will keep going up consistently because it’s unlikely there will be enough new inventory to meet buyer demand,” said Sheharyar Bokhari, Redfin Senior Economist. “We expect there will be slightly more sales this year, largely due to pent-up demand, but there won’t be enough of an increase in listing activity to put significant downward pressure on prices.”
Metro-Level Highlights
Fifteen of the 50 largest U.S. metro areas saw home prices decline month over month in December. Tampa, FL, experienced the largest drop, down 1.3%, followed by Atlanta (-0.9%) and Miami (-0.7%).
On the other hand, cities like Pittsburgh, PA (1.9%), Cleveland (1.5%), and St. Louis, MO (1.3%) led the nation in monthly price gains.
Looking ahead, inventory shortages are expected to sustain upward price pressure, even as increased buyer demand contributes to a modest rise in sales. Redfin’s forecast signals another year of cautious growth for the U.S. housing market.
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