- U.S. home prices fell 0.1% in April.
- It's the first monthly drop since 2022.
- Buyer hesitancy seen as slowing sales.
U.S. home prices dropped slightly in April.
The decline was measured at 0.1% by the Redfin Home Price Index, on a seasonally adjusted basis. It’s the first month-over-month fall in prices since September 2022, according to the Seattle-based brokerage site.
But on a year-over-year basis, Redfin said April home prices around the country were up 4.1%. Still, that’s less than the 4.9% growth recorded in March, the lowest annual price growth since July 2023.
Redfin senior economist Sheharyar Bokhari said housing costs continue to be an issue.
“Home prices are flat, and that’s good news for buyers after years of rapid increases,” Bokhari said. “But even with prices softening, affordability remains a major hurdle. Elevated mortgage rates and high prices mean that many buyers are stretching their budgets to make a purchase.”
He attributed what’s seen as a minor change in prices to demand being down while supply is up.
Buyers are seen taking “a wait and see approach” to making major purchases due to concerns over the impact of President Donald Trump’s on-again, off-again tariffs that some fear could lead to a recession.
That’s led to pending home sales falling 3.5% month over month in April, according to Redfin, and the total number of homes for sale hitting a five-year high even with sellers offering more concessions.
Mortgage payments also reached an all-time high in April, with the median U.S. monthly mortgage payment at $2,870, Redfin data has shown. The new record was said to result from both high home prices and mortgage rates.
The new data released Wednesday had home prices falling in half of the nation’s most populous metropolitan areas, a list which does not include any place in Utah. Redfin described the numbers as “highlighting the overall slowdown.”
The company’s data found April home prices, adjusted on a seasonally adjusted basis and compared month over month, dropped the most in Charlotte, North Carolina, and Virginia Beach, Virginia, where they were down 1%. The biggest home price increase was in Nassau County, New York, up 1.8%.