San Diego led the drop with a 1.4% decrease, followed by Los Angeles and Fort Lauderdale, FL
US home prices inched up 0.2% in August on a seasonally adjusted basis, according to the latest Redfin Home Price Index (RHPI).
While the modest uptick marked the first acceleration in monthly growth since January, the annual pace of appreciation slowed to just 3.1%, the lowest rate recorded in RHPI data going back to 2012.
Redfin’s RHPI, which uses a repeat-sales pricing method similar to the S&P CoreLogic Case-Shiller Index, tracks changes in single-family home prices by measuring how prices have shifted since the last sale of the same property.
The August data, which covers the three months ending August 31, 2025, showed a shifting market as buyers and sellers adjusted their strategies due to ongoing affordability issues and economic uncertainty.
Market finds a new equilibrium
“The tug-of-war in today’s housing market may actually be creating an opening for both buyers and sellers,” said Redfin senior economist Sheharyar Bokhari.
“With more inventory available, intense bidding wars are in the rearview mirror, so buyers have room to negotiate. At the same time, sellers who price their homes realistically are still finding buyers, and overall, prices are holding steady. This middle ground could leave a window of opportunity open for both sides.”
The cooling in price growth comes as inventory levels have returned to pre-pandemic norms, but demand has not followed suit.
Many buyers stayed out of the market because of high prices, rising mortgage rates, and economic uncertainty. For the first time in two years, fewer sellers listed their homes in July, showing a change in market mood.
The US housing market also saw its biggest monthly drop in active listings since 2023 with August data showing a 1.4% decline in homes for sale. New listings also cooled, slipping 1.1% month over month to the lowest level since January.
Regional shifts highlight uneven recovery
The RHPI’s metro-level breakdown showed that 26 of the 50 largest US metros posted month-over-month price declines in August.
San Diego led the drop with a 1.4% decrease, followed by Los Angeles (-1.1%) and Fort Lauderdale, FL (-1%).
Meanwhile, San Francisco and Philadelphia both saw prices rise 1.5%, with Charlotte up 0.8%.
Year-over-year, New York posted the strongest gains at 11%, trailed by Nassau County, NY (8.9%) and Newark, NJ (8.6%).
On the other hand, Austin, TX (-3.7%), Tampa, FL (-3.5%), and Oakland, CA (-2.1%) recorded the steepest declines.
Meanwhile, the average price of a new home in Texas edged up to $428,826, compared to $425,204 in July. Austin saw the sharpest increase, with average prices jumping to $500,715 from $489,692, according to the latest Texas New Home Sales Report from HomesUSA.com.
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