Redfin Reports U.S. Home Prices Crept Up 0.3% in January

Key Terms

redfin home price index (rhpi) technical

The Redfin Home Price Index (RHPI) is a widely followed measure of how U.S. home sale prices are changing over time, calculated from actual residential transactions recorded by Redfin. Investors watch it as a near-real-time gauge of housing market strength—like a thermometer for home prices—because shifts in the index can signal changes in demand, lending conditions, and economic confidence that affect real-estate investments, mortgage-related securities, and broader market sentiment.

repeat-sales pricing method technical

A repeat-sales pricing method measures price change by tracking the same item or asset each time it is sold, rather than comparing different items sold at different times. Like watching the resale price of the same car over years instead of averaging prices of different cars, it isolates true market movements from differences in quality or features, so investors get a clearer signal of underlying price trends and inflation for that asset class.

seasonally adjusted technical

Seasonally adjusted means that figures have been modified to remove the effects of regular and predictable changes that happen at specific times of the year, such as holidays or weather patterns. This adjustment helps reveal the true underlying trend by making comparisons across different periods more accurate. For investors, it provides a clearer picture of whether economic activity is genuinely improving or declining, without the noise of seasonal fluctuations.

30-year fixed mortgage rate financial

The 30-year fixed mortgage rate is the interest rate charged on a home loan that is paid back over 30 years with consistent monthly payments. Because the rate stays the same throughout the loan period, it provides stability and predictability for homeowners. This rate influences borrowing costs and can impact the overall housing market and consumer spending.

Prices fell month over month in 14 major metros, with the biggest declines in Warren, MI, San Antonio and Minneapolis

SEATTLE--(BUSINESS WIRE)-- U.S. home prices crept up 0.3% month over month in January on a seasonally adjusted basis, following a 0.2% gain in December. That’s according to a new report from Redfin, the real estate brokerage powered by Rocket.

Prices rose 2.1% from a year earlier, down from December’s 2.4% increase. Year-over-year price growth has now slowed for nearly 12 consecutive 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.

Price growth is muted because it’s the strongest buyer’s market in recent history—for those who can afford to buy. Many Americans are holding off on purchasing homes because mortgage rates are still more than double the all-time low hit during the pandemic. As a result, there are a record 47% more sellers than buyers, meaning that the buyers who are in the market have negotiating power when it comes to price. Prices are still rising slightly, but this growth pales in comparison to recent years; during the pandemic, prices rose as much as 21% year over year.

“Mortgage rates have dipped in recent weeks, which has boosted purchasing power for house hunters, but a lot of folks are still waiting to buy until rates drop further,” said Chen Zhao, Redfin’s head of economics research. “The good news is that in the meantime, price growth is limited and buyers have room to negotiate concessions from sellers.”

The average 30-year fixed mortgage rate currently sits at 6.09%, down from nearly 7% a year ago.

Home prices are falling in 14 major U.S. metro areas

Home prices fell in 14 of the 50 most populous U.S. metropolitan areas month over month on a seasonally adjusted basis in January.

The biggest declines were in Warren, MI (-1.5%), San Antonio (-1%), and Minneapolis (-0.8%). The biggest increases were in Philadelphia (2.6%), Providence, RI (2.5%) and San Francisco (2.1%).

On a year-over-year basis, prices fell in 16 metros, with the biggest declines in Austin, TX, (-4.2%), San Antonio (-3.8%) and Jacksonville, FL (-3%). The largest gains were in San Francisco (14.3%), New York (11.1%) and Milwaukee (9.2%).

To view the full report, including charts, additional metro-level data and a full methodology, please visit: https://www.redfin.com/news/home-price-index-january-2026

About Redfin

Redfin is a technology-driven real estate company with the country's most-visited real estate brokerage website. As part of Rocket Companies (NYSE: RKT), Redfin is creating an integrated homeownership platform from search to close to make the dream of homeownership more affordable and accessible for everyone. Redfin’s clients can see homes first with on-demand tours, easily apply for a home loan with Rocket Mortgage, and save thousands in fees while working with a top local agent.

You can find more information about Redfin and get the latest housing market data and research at https://www.redfin.com/news. For more information about Rocket Companies, visit https://www.rocketcompanies.com.

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Contact Redfin Journalist Services:

Tana Kelley

press@redfin.com

Source: Redfin