Eight of the 50 most populous U.S. metros—including seven in Florida and Texas—recorded a drop in home prices year over year, led by Tampa (-6%)
U.S. home prices grew 0.4% from a month earlier in February on a seasonally adjusted basis, equal to the slowest pace since July 2024, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. Home prices were up 5.1% on a year-over-year basis—the slowest pace since August 2023.
Prices have grown between 0.4% and 0.6% month over month in 13 of the past 16 months.
This is according to the Redfin Home Price Index (RHPI), which uses the repeat-sales pricing method to calculate seasonally adjusted changes in prices of single-family homes. The RHPI 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 Senior Economist Sheharyar Bokhari said while home prices are rising steadily, year-over-year growth has slowed for 10 consecutive months, dropping from 7.5% in April 2024 to 5.1% in February.
“There’s some good news for both buyers and sellers as we enter the Spring homebuying season. The recent decline in mortgage rates and slowing price growth is bringing more home hunters off the sidelines, an encouraging sign for potential sellers,” he said.
“At the same time, some areas of the country have turned into fully fledged buyer’s markets, where homes are sitting longer and people are able to negotiate a good deal under the list price. That’s particularly the case in several Florida and Texas markets where the number of homes on the market has ballooned and prices are now starting to fall,” he said.
Metro-Level Summary: Redfin Home Price Index, February 2025
Eight (16%) of the 50 most populous U.S. metro areas—including seven in Florida and Texas—recorded a seasonally adjusted drop in home prices in February, year over year.
The biggest decline was in Tampa, FL (-6%), followed by Austin, TX (-3.5%) and Fort Worth, TX (-2.4%). The highest year over year gains were recorded in Detroit (20.9%), St Louis (12.6%) and Pittsburgh (12.6%).
To view the full report, including charts, additional metro-level data and methodology, please visit: https://www.redfin.com/news/home-price-index-february-2025
